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Full text of "Canada and Hong Kong Update = Jia Gang Yan Jiu Tong Xun"

Digitized by the Internet Archive 

in 2010 with funding from 

Multicultural Canada; University of Toronto Libraries 



http://www.archive.org/details/canadahongkongup113join 




s. 



CANADA AND HONG KONG UPDATE 



SPRING 1990 



Introducing the Research Project: Goals and Directions 



by Diana Lary 
Toronto 

Hong Kong is becoming 
increasingly significant for 
Canada. During the last decade, 
trade with China, for which 
Hong Kong is the major 
entrepot, has increased. The 
desire to leave Hong Kong 
before the territory's return to 
Chinese sovereignty in 1997 has 
made Canada an ever more 
important immigration 
destination. In 1989, 19,994 
people landed in Canada from 
Hong Kong, almost half the 
people who left the territory; 
similar figures are expected for 
the foreseeable future. Canada's 
long involvement and fascination 
with China has been reflected in 
the academic world by serious 
study of the country and our 
relationship with it. This study 
has focused on China as a 
whole, with very little attention 
to Hong Kong as a discrete 
territory. Though the territory 
has always been predominantly 
Chinese, recent developments 
mean that it must now be treated 
as a distinct entity. 

Immigration from Hong Kong 
is having a major impact on 
Canada. There are significant 
settlement issues, as a large, well 
qualified and relatively affluent 
group of immigrants comes in; 
this is a change from the 



traditional pattern of start-at-the- 
bottom migration. The growth 
in the size and sophistication of 
the Chinese Canadian community 
is also likely to have an impact 
on our relations with China as 
this group of people makes its 
voice heard; in last year's 
demonstrations over the Chinese 
student movement and the 
Peking Massacre, the Chinese 
Canadian community played a 
leading role. On another plane, 
the unprecedented return of 
millions of people to an 
authoritarian government raises 
concerns over citizenship, human 
rights and legal issues in Hong 
Kong. These will assume 
considerable importance both in 
light of Canada's traditional 
concern for such issues, and the 
large numbers of people here 
with close personal connections 
to Hong Kong. 

These issues require serious, 
objective academic study, 
especially in a climate which is 
sometimes overheated. The 
unfolding situation also needs to 
be monitored regularly, in order 
to analyse it in terms of 
Canadian interests, and to 
provide a running record of a 
fluid situation. This is the first 
of the project's tri-annual updates 
on Hong Kong and Canada, 
which will cover some topics 
(viz immigration, trade, 
settlement) at regular intervals, 
and others as they arise. 






Material for the updates is 
provided by a number of 
correspondents in Canada, the 
United States, Hong Kong, China 
and the United Kingdom. The 
project will also sponsor a series 
of academic workshops, 
coordinated by Canadian 
researchers, which will produce 
short, readable publications on 
specialised topics. The overall 
intention of the project is to 
provide objective, consistent 
information which may be useful 
in ensuring that Canadian 
involvement with Hong Kong 
develops as smoothly and as 
beneficially as possible. 
References to materials on all 
aspects of the Canada-Hong 
Kong relations are being 
collected from many Canadian, 
American, British and Hong 
Kong sources to be stored in a 
bibliographic database in the 
project office. 



In This Issue... 

Visa Students in Ontario 

Immigration Statistics 

Democratization in Hong Kong 

The Basic Law Explicated 



per 

F1029.5 
H6 C36 



Immigration Statistics 

by Diana Lary 
Toronto 

Over the past two years, the 
number of immigration 
applications received at the 
Canadian Commission in Hong 
Kong has risen steeply, from 
15,334 in 1988 to 29,584 in 
1989. The unsetUing effect of 
the Tiananmen Massacre in 
Peking on June 4th, 1989 on 
Hong Kong shows up clearly: 



Quarter 




Applications 


1988 


First 


3,456 




Second 


3,615 




Third 


5,161 




Fourth 


3,102 




Total 


15,334 


1989 


First 


3,837 




Second 


4,765 




Third 


12,750 




Fourth 


8,232 




Total 


29,584 



These are formal applications; 
they run well below pre- 
application questionnaires (PAQ), 
the first sign of interest in 
emigration to Canada, of which 
there were 42,052 in 1988 and 
45,229 in 1989. No fee is 
payable for a PAQ; many 
people who feel after they have 
submitted a PAQ that they are 
unlikely to be accepted as 
immigrants do not proceed to 
submit a formal application. 

There is often a considerable 
time lag between making an 
application and (for the 
successful) being issued a visa. 
The length of the lag depends on 
the case load of immigration 
officers, and the relative priority 
of the class under which a 
person is applying. Very few of 
the applications made in 1989 



will yet have resulted in visas 
being issued. 

One way of avoiding the 
lengthy waiting period for 
processing at the Commission in 
Hong Kong is to make an 
application at another Canadian 
immigration office abroad. The 
major country in which such 
applications are likely to be 
made is the United States. In 

1988, 722 applications were 
screened at Canadian consulates 
for people whose last country of 
permanent residence was Hong 
Kong; in 1989 the figure was 
1287. 

Between 1988 and 1989 the 
number of visas issued rose 
slightly. The types of successful 
applicants changed significantly. 
In 1988 independent immigrants 
(people accepted on the strength 
of their qualifications under the 
point system) accounted for 
54.5% of visas issued, in Hong 
Kong and at other posts, to 
people whose country of last 
permanent residence was Hong 
Kong (CLPR Hong Kong); in 
1989 that proportion fell to 
41.4%. Some of the difference 
can be explained in terms of an 
expansion of the independent 
class in 1987, which allowed 
some people previously ineligible 
to apply. By 1989 the bulge 
had passed through system. The 
business classes (entrepreneurs, 
investors and self-employed), the 
groups which have received most 
publicity in Canada remained 
stable; in 1988 they accounted 
for 23.8%of visas issued, in 
1989 22.9%. Family class v 

(direct dependents and close 
relatives) grew in importance 
from 13.7% in 1988 to 22.9% in 

1989. It is likely that a 
substantial proportion of retired 
applicants also have relatives in 
Canada. 



Visas issued, by class. CLPR 
Hong Kong. 1988-1989 



CLASS 



1988 1989 



Family 2,467 3,858 

Conv. refugee 12* 

Designated 74 1,121* 

Retired 1,494 1,699 

Assisted relative 623 1,669 

Entrepreneurs 4,490 4,210 

Investors 699 1,132 

Self-employed 173 206 

Independent 12,353 9,993 

Not-stated 103 232 



Total 



22,476 24,132 



* Vietnamese refugees 

The change in composition of 
successful visa applicants is 
accentuated when the pass rates 
are examined. From 1988 to 
1989 they shifted only slightly in 
most classes, but declined 
sharply in the independent class. 



Pass rate, by class. CLPR Hong 
Kong. 1988-1989 

CLASS 1988 1989 

Family 89.5 95.2 

Conv. refugee - 100.0 
Designated 72.3 75.9 
Retired 83.6 81.5 
Assisted relative 76.3 81.1 
Entrepreneurs 86.1 71.6 
Investors 94.1 79.5 

Self-employed 92.2 62.8 

Independent 70.9 43.3 



Total 



77.3 74.4 



After being accepted as an 
immigrant, a person has up to a 
year in which to arrange 

STATS ■ page 5 



2 UPDATE 



CANADA AND HONG KONG UPDATE 

Editors Diana Lory 

Stephanie Gould 

Illustration Joe Burdzy 

Design Stephanie Gould 

Contributors Philip Calvert 

Ho-yin Cheung 
Harriet Clompus 
Keung-sing Ho 
Tan Xiaobing 
Chow Ying Wong 

Canada and Hong Kong Update is 
published three times a year by the 

Canada and Hong Kong Project, 
Joint Centre for Asia Pacific Studies, 
Suite 200K, Administrative Studies Bldg. 
York University, 4700 Keele St., 
North York, Ontario, 
CANADA M3J 1P3 

Telephone: (416) 736-5784 
Fax: (416) 736-5687 



CANADA AND HONG KONG PROJECT 



Director 
Coordinator 

Advisory Board 



Diana Lary 
Stephanie Gould 

Denise Chong 
Eh. Bernie Frolic 
John Higginbolham 
Dr. T.G. McGee 
Graeme McDonald 
Jules Nadeau 
Dr. William Saywell 
Dr. Wang Gungwu 



We want to thank the Donner Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 



In the Next Issue... 

Status Dislocation for Immigrants 

Interview with Author Sky Lee 

Torontians Responses to Tiananmen 



1997 and Emigration 
in Hong Kong 

by Lau Siu-kai and Wan Po-san 
Hong Kong 

The increasing exodus 

Despite the promise of the 
Chinese Government and 
constitutional measures designed 
to maintain the existing social 
structure and lifestyles of Hong 
Kong under the formula "one 
country, two systems" for fifty 
years after 1997, the scheduled 
return of Hong Kong to China 
has driven an increasing number 
of Hong Kong people to obtain a 
foreign passport or right of 
abode in a foreign country. 
From 1980 to 1986, people 
emigrated at around 20,000 a 
year. The annual outflow of 
emigrants rose to approximately 
30,000 in 1987 and 46,000 in 
1988. The most popular 
destination countries are Canada, 
the United States of America and 
Australia 



1987 



1988 



Total 22.300 19.000 

Canada 7380 5.893 

Australia* 4.610 4.940 

L'iA." 8.530 7.473 



30.000 45300 

16.170 22.802 

6.420 9^30 

8.517 11,394 



Source: Hong Kong Government ' ■ task force on 
9 September 1989; Nia Uagaau. 15 Much 1990. 

'Number of migrants residing in Australia. 

"By March, the Hong Kong backlog amounted to 

nearly 50,000 If any of the reform billi before the 

United Stares Congress can be legislated, the outflow 

of Hong Kong people to the States will increase 

accordingly. 



In view of Hong Kong's return 
to Chinese sovereignty after 
1997, people are watching the 
sociopolitical situation of the 
mainland and the words and 
deeds of the Chinese political 
leaders closely. The June 4 
Tiananmen Square massacre, the 
subsequent political crackdown 
on the pro-democracy movement 
and the tough economic austerity 
programme in China, and the 
promulgation of the final draft of 
the Basic Law have significantly 
depressed Hong Kong people's 
confidence in the territory's 
future. The number of people 
inquiring and applying for 
emigration visas has drastically 



increased. Nevertheless, given 
the present immigration 
regulations of major host 
countries and the time required 
to process applications, the 
number of people leaving the 
territory in the next two or three 
years is expected to be between 
55,000 and 60,000 a year. 

In the meantime, emigration- 
linked investment companies and 
schemes are increasing and 
creating a growing passport 
market for those who are 
desperate to get a second 
passport but cannot meet the 
selection criteria of major host 
countries. Many second-rung 
countries have joined in to cash 
in on the capital and brain drain 
from the territory. Some (e.g. 
Singapore and South Africa) 
have eased their migration 
regulations to lure capital and 
professionals and skilled workers, 
while others (e.g. Tonga and 
Belize) are simply "selling" 
passports. Anticipating the setup 
of the common market of the 
European Economic Community 
in 1992, the latest trend in the 
passport market is to buy 
property in Portugal and Spain 
and then apply for residency. 

The international safety net 

The rising trend to emigration 
has a potentially catastrophic 
impact on the prosperity and 
stability of the territory and has 
become one of the major social 
concerns. On the one hand, 
owing to the immigration 
policies of the host countries, the 
majority of emigrants are either 
the well-off (who are usually 
qualified to emigrate by investing 
no less than CS 150,000 in the 
host country), or key personnel 
in the labour force (who can 
meet the visa criteria of 
independent migrants and who 
are mainly highly educated, 
young, professional, technical, 
managerial and administrative 
workers). In 1988, the capital 
outflow to Canada alone 
amounted to CS2.4 billion. 
Degree holders made up 15% of 
the emigrants while only 3.5% of 
the population had this level of 



UPDATE 3 



1997 and Emigration 

From page 3 

educational attainment. Of all 
employed emigrants, 33.6% were 
professional and technical 
workers, 16.2% were 
administrative and managerial 
workers, as compared to 7.4% 
and 3.8% respectively of the 
labour force was in these 
occupational categories. Surveys 
of professional associations 
published in the past few months 
illustrated further the seriousness 
of brain drain - e.g. 85% of the 
local members of the Royal 
Institute of Chartered Surveyors, 
80% of the members of the 
Hong Kong Society of 
Accountants, and 60% of the 
members of the Law Society 
expressed their intention to leave 
the territory. The accelerating 
outflow of emigrants not only 
would threaten the economy, 
increase the emigration 
propensity of those staying 
behind, but also would dampen 
the morale and confidence of 
those who do not want to or 
cannot qualify to emigrate. 

In view of the alarming 
problem and its negative effects 
on the territory, collective efforts 
have been made by the 
Government and the private 
sector (especially the business 
leaders) to help arrest the 
worsening brain drain and boost 
confidence in the run-up to 1997. 
For example, studies have been 
commissioned to examine the 
impact of emigration and 
possible strategies for retaining 
key personnel of the labour 
force. Campaigns have been 
launched to lobby foreign 
countries for granting passports 
or right of abode for Hong Kong 
people. Emigrant businessmen 
and professionals have been 
encouraged to return to Hong 
Kong after gaining the security 
of a second passport. An 
unprecedented expansion of 
infrastructural development and 
higher education are planned. 

The foci and strategies of these 
campaigns are shaped by two 



prevailing viewpoints. In the 
first place, a healthy economy is 
regarded as the key to the future 
of Hong Kong. As a result, the 
rationale adopted by the 
lobbyists, especially the business 
leaders and overseas Chambers 
of Commerce, is generally based 
on the bilateral economic 
interests between the destination 
country and the territory. The 
anxiety, helplessness and the 
future of the general public are 
deemed to be of less significance 
than the maintenance of 
economic prosperity by retaining 
key personnel of the labour 
force. In the second place, the 
major objective is to secure an 
exit route for insurance instead 
of immediate escape. This in 
fact coincides with the dilemma 
of Hong Kong people. On the 
one hand, people generally 
distrust the Chinese government, 
lack confidence in Hong Kong's 
future and are desperate for a 
foreign passport. On the other 
hand, apart from the difficulties 
of adaptation, it is quite common 
for emigrants (particularly 
professional, managerial and 
administrative workers) to 
experience downward social 
mobility in destination countries. 
Hence people generally want a 
passport to stay more than a 
passport to leave. In a similar 
vein, the length of residency 
required by the immigration 
regulations of host countries 
(called by Hong Kong people as 
"emigrant imprisonment") is one 
of the major concerns in 
considering the destination of 
emigration. 

Restoring the right of abode in 
Britain is thus not only regarded 
by the concerned parties in Hong 
Kong as the moral and legal 
responsibility of the British 
Government for all of the 3.25 
million Hong Kong British 
passport holders, it is also seen 
to be the first necessary step to 
lobby other countries to offer 
similar "delayed action" passport 
schemes (packages that do not 
require the passport holder to 
relocate immediately to qualify), 



thereby constructing an 
international safety net for Hong 
Kong people should needs arise. 
In this connection, the changes 
to the Singaporean immigration 
policy made last July are a 
significant breakthrough. Right 
of abode will be granted to 
/ 25,000 Hong Kong skilled 
workers. Successful applicants 
have up to five years to relocate 
in Singapore. By February, 
20,038 people had applied and 
16,691 applications have been 
approved. 

Yet the nationality package 
proposed by the British 
Government to grant British 
passports to a selected 50,000 
Hong Kong residents and their 
dependents (a total of about 
225,000 beneficiaries) has 
become a matter of controversy. 
In Britain, it might still be 
rejected or substantially revised 
by Parliament and repealed later 
by the Labour Party when it is 
in power [ihe bill has since been 
passed]. In Hong Kong, due to 
the limited quota of the package, 
a majority of people will still be 
excluded from the scheme. 
Under the proposed selection 
criteria, priority is to be given to 
those who probably are qualified 
to obtain other foreign passports. 
Therefore, the package is likely 
to be socially divisive and may 
thus intensify the confidence 
crisis. To the Chinese 
Government, the package and the 
internationalization of the Hong 
Kong issue have made Beijing 
lose face. China also sees a 
conspiracy of the British 
Government either to retain her 
influence on the territory after 
1997, or to destabilize the 
Special Administrative Region 
(SAR) by draining its talent. 
After the June 4 event, Chinese 
officials have taken a tough 
stance on the nationality issue of 
Hong Kong. They oppose the 
plan fiercely because if an 
increasing number of foreign 
passports are granted to 



4 UPDATE 



From page 4 

Hong Kong people without the 
requirement of residency, then 
after 1997 Hong Kong might 
become a place administered by 
people of foreign nationalities. 
If these foreign passport holders 
stay in Hong Kong after 1997, 
their loyalty to China will be 
held in suspicion. If they choose 
to leave on the eve of the 
takeover, which is very likely 
according to the findings of 
opinion surveys, the functioning 
of the territory may be 
jeopardized. Both possible 
outcomes will undoubtedly be to 
the detriment of the interests of 
China. In responding to the 
right of abode issue, the Chinese 
Government has imposed more 
nationality restrictions on key 
government officials and 
legislators of the SAR; stressed 
the contradiction between the 
package and the nationality law 
of China (which does not 
recognize dual nationality, does 
not recognize foreign passports 
obtained without residence 
requirements, regards all Hong 
Kong people residing in the 
territory as Chinese nationals 
unless they have renounced their 
Chinese nationality, and forbids 
state employers to renounce their 
Chinese nationality); and 
emphasized the point that 
passports issued under the 
scheme will not be recognized 
by the Chinese Government. 
Besides, it is expected that one- 
third of the quota of the package 
will be allocated to civil 
servants, the backbone of the 
government bureaucracy. While 
the package is not accepted by 
the Chinese Government, a 
nationality and loyalty dilemma 
for civil servants, whose present 
terms of employment do not 
restrict them from holding 
foreign passports, may thus be 
created. 

By and large, the accelerating 
trend of emigration has affected 
the function and development of 
the territory. Yet it is its 



seriousness that prompts the 
British and Chinese Governments 
to take measures to deal with the 
problem. Nevertheless, major 
efforts carried out to stem brain 
drain might at best serve their 
purpose to anchor people in 
Hong Kong up to or before 
1997. Without any firm 
structural assurance of the 
autonomy of the territory and the 
establishment of mutual 
understanding and trust between 
China and Hong Kong (and 
assuming that the favourite host 
countries continue to receive 
immigrants from Hong Kong), 
these efforts might only delay 
the problem of emigration 
instead of solving it. / 



Immigration Stats 

From page 2 

departure for Canada. Landings 
in Canada therefore include 
many people who were approved 
the year before. Total landings 
for 1988 were 23,286, for 1989 
19,994. The decline in 
independent immigrants shows up 
again - 8,669 of 19,994 (43.36%) 
in 1989, as opposed to 13,739 of 
23,286 (59%) in 1988. 



Immigrants, bv class 




CLPR Hong Kong. 


1988-1989 


CLASS 1988 


1989 


Family 3,045 


3,180 


Conv. refugee 


3 


Designated 52 


887 


Retired 1,231 


1,449 


Asst. rel. 742 


810 


Entrepren. 3,872 


3,933 


Investors 472 


888 


Self-employed 133 


175 


Independent 13,739 


8,669 


Total 23,286 


19,994 



In terms of destination, 
patterns of immigrant landings 
from Hong Kong were stable. 
In 1988, 58.07% of immigrants 
were destined for Ontario 
(13,523), in 1989, 53.98% 
(10,793). In 1988, 22.27% 
(5,185) went to British 
Columbia, in 1989, 23.82% 
(4,763). There was a rise in 
landings in Quebec: in 1988 the 
province accounted for 5.93% 
(1,380) of Hong Kong 
immigrants, in 1989, 9.78% 
(1,956). 



Immigrants (by province) 

1988 1989 

Alberta 2,257 1,668 

B.C. 5,185 4,763 

Manitoba 409 290 

New Brunswick 33 49 

Newfoundland 30 30 

NWT 7 9 

Nova Scotia 63 84 

Ontario 13,523 10,793 

PEI 5 8 

Quebec 1,380 1,956 

Saskatchewan 390 344 

Yukon 4 



Total 



23,286 19,994 



Within each province, movement 
was overwhelmingly to the major 
cities: in 1988, Toronto 
accounted for 1 1 ,779 of the 
13,523 landings in Ontario, in 
1989 for 9,010 of 10,793; in 
1988, 4,962 of 5,185 landings in 
British Columbia were in 
Vancouver, in 1989 4,520 of 
4,763. 

All statistics used have been 
supplied to us by the Department 
of Employment and Immigration, 
Hull. We are most grateful for 
this assistance, and for the speed 
at which statistics have been 
made available. 



UPDATE 5 



Adjusting to Life in Canada: Visa Students in Ontario 



by Stephanie Gould 
Toronto 

"In the late 1970s and early 
1980s, a large number of the 
students who studied abroad 
returned to Hong Kong to live 
and work after the completion of 
their studies; but in recent years, 
there are indications that more 
and more are not returning, 
probably out of personal or 
family concern for 1997." 

Bernard Hung-kay Luk, 

"Education" in 

The Other Hong Kong Report, 

1989. 

In 1989, more of Hong Kong's 
students chose to study abroad 
than ever before and more chose 
to study in Canada than in any 
other country. Last year, 5,096 
students from Hong Kong 
obtained visas to study in 
Canadian secondary and post- 
secondary institutions, an 
increase of 34 percent over 1988. 
Students from the territory now 
make up the largest group of 
foreign students in Canada, with 
a total of about 14,000. Like all 
others studying in Canada on a 
visa, students from Hong Kong 
must return to their own country. 
While they may not be choosing 
to emigrate when they obtain a 
visa, the numbers alone indicate 
that the approach of 1997 is 
making studying abroad an 
attractive idea. 

Articles and advertisements 
about educational opportunities in 
Canada and elsewhere abound in 
Hong Kong's newspapers and 
magazines. But the most reliable 
place to get information on 
education abroad is The Hang 
Seng Bank which provides a 
non-profit Education Advisory 
Service. The bank keeps its 
information on Canada current 
by maintaining close ties with 
provincial trade representatives in 
Hong Kong and educational 
bodies here. Ms. Corina Tsang, a 
senior student counsellor at the 



bank, is quoted in the South 
China Morning Post, March 8, 
1990, as saying "the low cost of 
tuition for foreign students is a 
major attraction [to Canada]." 

But- few students are prepared 
for what they encounter in 
Canadian schools and 
universities. "Actually when I 
think about it, I didn't have very 
much preparation," said Evelyn 
Man, a Ph.D. student at the 
Ontario Institute for Studies in 
Education. "I knew very little 
about everything in Canada. 
Before you come the Canadian 
consulate arranges some sort of a 
briefing session in which you 
can ask questions. But actually 
you don't even know which 
questions to ask." Man is 
determined to return to her 
country to live and work, but she 
doesn't know whether she will 
stay after 1997. She describes 
herself as committed to the 
territory despite apprehensions 
about its future. 

"Be prepared for a much freer 
kind of atmosphere," said Man 
when asked if she has any 
advice for students in Hong 
Kong who are considering 
studying in Canada. "I don't 
think a lot of Hong Kong 
students are trained to cope with 
a very free system. I mean, if 
you're going to read a book you 
choose your own, but only 
within a very small range. So 
learn to take more initiative, try 
to find things out for yourself." 
Man describes the school system 
in Hong Kong as very "exam 
oriented" and academically 
competitive, but she says in 
many ways their academic 
training puts students from the 
territory at an advantage in 
Canada. 

Many students from Hong 
Kong are choosing to come to 
Canada in the transition stage 
between secondary and post- 
secondary education. Even 
though Hong Kong has been a 
British colony and most students 
attend Anglo-Chinese schools, 



the first challenge for most 
students on arrival in Canada is 
to learn English well enough to 
qualify for university entrance. In 
Hong Kong, while "primary 
education is mostly in Chinese, 
and secondary education is 
mostly in English," students and 
teachers have great difficulty 
with the transition, writes 
Bernard Luk in The Other Hong 
Kong Report. The result is that 
in Anglo-Chinese schools, 
textbooks and exams are in 
English, but Cantonese is spoken 
in the classroom, he explains. 

Jane Sims, English as a 
Second Language (ESL) teacher 
at Sir Sandford Fleming 
Secondary School in North York, 
Ontario, where 72 percent of 
visa students are from Hong 
Kong, says that they are very 
dedicated to their school work. 
"In spite of homesickness and 
culture shock and goodness 
knows what difficulties with the 
language, they work extremely 
hard and the success rate is very 
high." 

Tarn Goossen, School Trustee 
for the Toronto Board of 
Education who came from Hong 
Kong 20 years ago, says visa 
students from Hong Kong also 
do well socially in the Canadian 
system at the secondary school 
level. She described "one group 
of visa students [who] took on 
the Christmas party and 
fundraising. They've put on 
functions that include the whole 
student body and have provided 
leadership in the school." But 
she stressed that some students 
need more assistance adapting to 
life here. "You also hear stories 
of kids who are so lonely they 
don't know what to do with 
themselves." 

To make it easier for visa 
students to adapt to life in 
Canada and our school system, 
Goossen would like to see more 
information about Canada 
available to students and their 
parents before they leave the 



6 UPDATE 



territory. "People in Hong Kong 
really don't know any details 
about how the education system 
works here. They don't know 
that we have all these different 
high schools. So, we're asking 
for a pamphlet that can explain 
the system better." 

When students arrive in 
Canada, Goossen believes more 
should be done to help them 
adjust to their new life. "We're 
trying to encourage them to 
come two weeks earlier in the 
summer. And then we'll provide 
them with an orientation course, 
combined with ESL. We're 
looking into doing that, but we 
can't do it this year. We might 
do it next year." 

Both Sims and Goossen are 
concerned about some students 
under the age .of 16 who appear 
to be living in Canada without a 
guardian. Under Canadian 
immigration regulations, students 
younger than 13 are not granted 
visas on the grounds that they 
are too young to be away from 
their families, while students 
under 16 must have a guardian 
living here. "A lot of times, the 
people in Hong Kong will just 
give you a name of a relative 
here and, really, a name only." 
When faced with an emergency 
situation, social workers with the 
Toronto board have experienced 
difficulty reaching people named 
as guardians, said Goossen. 
"They have had to call Hong 
Kong on a number of occasions 
to find the parents to tell them 
what's happening." 

She says another problem is 
that the social worker responsible 
for visa students is only on a ten 
month contract "It's not easy 
for them [students from Hong 
Kong] to make friends outside 
the school situation. So, they 
get very lonely. And a lot of 
them live in rooming houses, 
contrary to all that myth about 
rich Hong Kong students. And 
then when the summer comes, 
it's even worse. They can't 
work. And I don't think many 
of them can really manage to go 
back to Hong Kong to visit. So 
they're here!" 

She and other members of the 



Toronto Board "have been trying 
to figure out a way to make it 
really clear" that students under 
16 must have a guardian living 
in Canada. "One relative 
suggested that we should tie it in 
with immigration. Back in Hong 
Kong, the parents should 
accompany the children when 
they get a visa." In addition, she 
thinks guardians should be 
required to attend an interview 
when the student registers at the 
school he or she will attend in 
Toronto. 

Goossen says "visa students 
tend to be neglected in the 
system because they don't have a 
spokesperson. They don't have 
the same rights that most 
Canadians enjoy. All immigrants 
are eventually voters, so they 
manage to have a voice. But 
visa students have no status." 

Sims would like to help young 
students living on their own 
here, but she doesn't want to 
take any action that would 
jeopardize their chances of 
continuing their studies in 
Canada. She gives her home 
telephone number to students. "I 
don't think children should be 
living alone and not have an 
adult's number that they can call 
if they have a fire." 

Sims would like to see more 
students from Hong Kong able to 
return to Canada to live and 
work once they have completed 
their education. "People from 
Hong Kong are leaving not 
because they want to come to 
Canada, but because they are 
leaving a bad situation. A lot of 
immigrants leave against their 
will; certainly no refugee ever 
wants to come. But once the 
students are here, they would 
love to come back. I have any 
number of students who would 
love to come to Canada, but 
unless their family has money 
[they are unable to return] which 
strikes me as very unfortunate 
because once we've educated 
them in Canada it seems a 
shame to loose them." 



Citizenship Law Explained 

by Chi-Kun Shi 
Toronto 

Hong Kong citizenship law is 
stipulated by a series of British 
legislation as it relates to 
nationality in Briush colonies. 
Under the British Nationality 
Act, 1948, all citizens of the 
United Kingdom and Colonies 
(CUKC) are British subjects. 
They enjoy the right to enter and 
reside in Britain in addition to 
their rights as a citizen of the 
particular colony where they live 
as well as travelling convenience 
within the Commonwealth. 
CUKC may be secured by birth, 
by descent from a CUKC on the 
paternal side, by marriage, in 
case of women, to a male 
CUKC or by naturalization after 
five years of residence in the 
colony. 

The structure of the 1948 Act 
has been maintained throughout 
subsequent legislation. The 
changes introduced by the latter 
are largely concentrated in 
redefining the rights of a CUKC. 
The series of legislation 
following the 1948 Act 
consistently erodes a CUKC's 
right to enter and remain in 
Britain. This is achieved by 
narrowing the group of colonial 
subjects who are to receive such 
rights, coined by the 1971 Act as 
the "right of abode". 

The most recent legislation is 
the 1981 Act. It devised three 
types of citizenship; British 
citizen, British Dependent 
Territories Citizens (BDTC) and 
British Overseas Citizens. 
British Citizens enjoy the right 
of abode in Britain, BDTCs do 
not. 

Most Hong Kong people fall 
within the BDTC category. 
BDTC may be conferred upon 
Hong Kong people by birth, 
adoption, registration in case of 
minor children of naturalized 
BDTC parents, marriage in case 



CITIZENSHIP - page 8 



UPDATE 7 



Citizenship 

From page 7 

of alien women and by descent 
BDTC may also be secured 
through naturalization, after 
residency of five years in Hong 
Kong and fulfilment of other 
qualifications such as command 
of the English language. 

Most significantly, BDTCs are 
thrust upon existing CUKCs who 
do not hold the "right of abode" 
under the 1971 Act Under the 
1971 Act, only CUKCs who 
were bom, adopted, registered or 
naturalized in Britain have the 
"right of abode". Such rights 
were also allowed to people who 
qualify due to complicated 
ancestral link to Britain or, in 
the case of alien women, through 
marriage. While the 1971 Act 
stripped all the Hong Kong 
originated CUKCs of their right 
to reside in Britain, the 1981 Act 
took the further step of lumping 
them into a separate category 
from the other CUKCs who are 
assimilated into the "British 
Citizen" category. The travelling 
convenience enjoyed by CUKCs 
within the Commonwealth is 
subject to the discretion of the 
individual countries. For 
example, BDTCs cannot enter 
Britain without a visa. 

Most people in Hong Kong 
today hold the BDTC. However, 
there are some who do not 
qualify for it; they are then 
stateless. The travelling 
document they hold is the 
Certificate of Identity issued 
pursuant to the United Nations 
Convention Relating to the Status 
of Stateless Persons. 

Finally, there are a growing 
number of Hong Kong people 
who hold foreign citizenship. To 
the extent that it is not repugnant 
to the foreign citizenship law, 
they may hold such citizenship 
in conjunction with their BDTC. 



"Between the Cracks of 
Contradiction..." 

by Chow Ying Wong 
Toronto 

An article titled "Between the 
cracks of contradiction: where 
do the new immigrants from 
Hong Kong fit?" was published 
in the Modern Times Weekly on 
March 30, 1990. The author, Su 
Guannan, attributes adjustment 
problems of recent immigrants to 
(i) a lack of accurate 
information; (ii) the 'safety net' 
mentality and, most importantly, 
(iii) a 'vacuum' in the value 
system -- one which is created 
when Hong Kong culture meets 
Canadian culture. 

The author contends that 
although prospective immigrants 
can get information about 
Canada from the Canadian 
Commission, most readily 
available information doesn't 
address social problems and 
pressures existing in the host 
society. As a result, many are 
shocked, or feel they are "being 
cheated" when they come to 
Toronto. 

With the approach of 1997, 
emigration has almost become a 
fad in Hong Kong. However, 
many people treat the experience 
of migration as "moving, touring, 
having a vacation, or visiting 
relatives," without realizing its 
impact on themselves and 
possibly the lives of their next 
few generations. 

Like other newcomers to this 
country, immigrants from Hong 
Kong experience unemployment 
and underemployment. Su 
Guannan argues that this is 
critical to the settlement process 
only when downward mobility is 
related to the value system the 
immigrants bring with them. 
Hong Kong is highly 
materialistic and competitive. 
Status, and therefore happiness, 
is determined by the 
accumulation of assets. Many 
recent immigrants try to re- 
establish their status in Canada 



when they arrive. This often 
means transplanting their lifestyle 
from Hong Kong to Toronto. It 
also includes spending most of 
their savings on an automobile 
and the down payment on a 
house. By obligating themselves 
to a huge mortgage, many 
immigrants are prone to family 
crises and other problems of 
adjustment. Finally, the author 
suggests a more flexible financial 
policy for new immigrants. 

The 'vacuum' in the value 
system Su Guannan refers to is 
an important element in the 
process of cultural adjustment. 
Dissonance is created when the 
cultural values of newcomers and 
the host society are not mutually 
accepted. More than one 
'vacuum' may exist for recent 
Hong Kong immigrants. Not 
only do they have to adapt to 
the 'mainstream' society, they 
have to be accepted by the local 
Chinese community as well. 
The author describes recent Hong 
Kong immigrants as unwilling to 
adjust to the new society. 
Rather than adapting to that of 
the host society, they My to bring 
their lifestyle to Toronto, to 
change the environment by 
making it similar to the one they 
have left behind. 

The comment, although not a 
representative one, sounds similar 
to the saying about the 
"unassimalatable Asian" in the 
early part of the century. It 
reflects a certain degree of 
conservatism in the Chinese 
community toward newcomers. 
The image of recent Hong Kong 
immigrants as a bunch of well- 
off yuppies and conspicuous 
consumers is popular not only in 
the dominant society, but among 
some members of the local 
Chinese community, who try to 
recall the hard times they had 
when they first settled in 
Canada. Hence, it is important 
to bear in mind that the issue 
isn't limited to seulement in the 
mainstream society, but also into 
one's ethnic community as well. 



8 UPDATE 



Chinese-Canadians Split 

by Tan Xiaobing 
Vancouver 

A battle over whether a plaque 
should be mounted to recognize 
China's continuing struggle for 
democracy and to commemorate 
those killed in Beijing last June 
disrupted Vancouver's Qing 
Ming, a festival for Chinese to 
pay tribute to departed ancestors, 
relatives and friends, this year on 
April 5th./ 

Last August, The Vancouver 
Society in Support of Democratic 
Movement proposed that a 
replica of the Goddess of 
Democracy, the statue that was 
erected in Tiananmen Square, be 
built in the Dr. Sun Yat-Sen 
Garden. But the Dr. Sun Yat-Sen 
Garden Society refused to 
provide space, for it was 
reluctant to become part of "a 
political forum." This year, the 
Vancouver Society in Support of 
Democratic Movement applied to 
the Vancouver Parks Board to 
place a plaque in the city-run 
Sun Yat-sen Park, adjacent to the 
Garden. 

The Chinese Benevolent 
Association, which has a 
membership of more than 50 
Chinese organizations, apposed 
placing the plaque in the garden, 
saying that the events in Beijing 
in June were an internal affair of 
China, and overseas Chinese, no 
longer being Chinese nationals, 
should not get involved. 

During a heated debate in a 
City Council committee room on 
Wednesday, March 21, the 
Council's Race Relations 
Committee recommended that the 
Vancouver Parks Board establish 
a subcommittee, including one 
member of the Race Relations 
Committee, to examine the issue 
further. 

After the debate, as the 
controversy spread within the 
Chinese community, some 
organizations took sides. 
Individuals also expressed their 
opinions by writing to Chinese 
newspapers and calling the 
"Voice of Overseas Chinese", a 
Chinese-language radio station. 



Over Commemoration of 

Duan Jin, the departing Chinese 
Consul-General in Vancouver, 
reportedly said that to 
commemorate the deaths in the 
June 4th incident was to 
commemorate the counter- 
revolutionary ruffians, and, thus, 
was to intervene in China's 
internal affairs. However, a 
person using the name of a 
"UBC student from Mainland 
China," argued that Dr. Sun Yat- 
Sen was a Chinese political 
leader, and to use his name for a 
plaque in Vancouver could also 
be considered an act to 
"intervene in China's internal 
affairs". He suggested the park's 
name should be changed. 

Although Qing Ming has come 
and gone for this year, the 
debate over whether to 
commemorate the deaths in 
Beijing continues. The 
Vancouver Society in Support of 
Democratic Movement will 
organize activities in May and 
June to mark the one year 
anniversary of the events in 
Beijing. 



Immigration's Impact on 
Vancouver Housing 

by Diana Lary 
Toronto 

One frequently expressed 
concern in Vancouver is that 
immigrants from Asia, notably 
Hong Kong, have driven up 
house prices. A report published 
in 1989 by the Laurier Institute, 
When did you move to 
Vancouver?, by Gregory 
Schwann, suggests a different 
picture. Using a series of 
federal government statistics for 
1971, 1976, 1981 and 1986, the 
report shows that international 
immigration to Vancouver 
declined from 1976 to 1986, and 
that intra- and inter-provincial 
migration into Vancouver far 
exceeded international migration. 



Massacre Victims 

Intra + inter- International 
provincial 

1967-71 176,810 71,760 

1972-66 122,475 74,830 

1977-81 145,660 61,250 

1982-6 135,235 50,190 

The pressure on Vancouver 
housing has more to do with 
demographic characteristics of 
the local population (the baby 
boom, decline in household size) 
than to movement into the area 
from abroad. As for the famous 
"monster homes," immigrants 
were less likely to occupy larger 
homes (9+ rooms) than local 
purchasers; 73% of such homes 
occupied during the 1981-6 
period were taken up by people 
moving within the Vancouver 
area. The report does not 
distinguish between origins of 
immigrants, nor does it cover the 
period since 1986 when the issue 
of housing has surfaced - 
statistics for that period will not 
be available until the next census 
in 1991. 

A more recent Laurier Institute 
report, The Housing Crisis: The 
Effects of Local Government 
Regulation, W.T. Stanbury and 
John Todd, (January, 1990) 
suggests that the situation has 
changed since 1986. 
Immigration has risen; in the 
two and a half years from 1987 
to June, 1989, 42,476 immigrants 
arrived in Vancouver, 
proportionally a much higher 
number than for the previous 
five year period. 10,897 were 
from Hong Kong, a slightly 
higher proportion than the 8,178 
(of 49,775)* who came in the 
period 1982-6 (p. 103). The new 
immigrant group has included 
significant numbers of people 
wanting to live in and able to 
afford large homes. / vty 6 

This report provides a 
considerable amount of statistical 
and anecdotal information which 
indicates that monster homes 
have come to be seen as a 
serious problem to many 
Vancouverites over the last few 

HOUSING ■ page 13 



UPDATE 9 



Information on Canada 

by Diana Lary 
Toronto 

The Hong Kong emigration 
climate has spawned a migration 
industry, which involves 
immigration consultants, lawyers, 
real estate agents, investment 
councillors, employment 
agencies, and household movers. 
The industry also provides 
information to let people know 
what they can expect from 
emigration. 

Canada is particularly well 
known in Hong Kong. There are 
regular newspaper columns on 
Canada, such as "Words from 
the Maple Woods" (Singtao 
Daily). There are numerous 
publications, in the vein of the 
late 19th century publications 
which circulated in Europe, and 
extolled the virtues of countries, 
to "sell" emigration to potential 
migrants. They tend to be vague 
and general, and to offer some 
quite dubious means of getting 
abroad. But in Hong Kong now 
emigration is a serious business, 
and much of the information 
presented is serious and accurate. 
General emigration publications 
focus on all possible destinations; 
they include a monthly 
periodical, The Emigrant. Others 
deal with one country only; at a 
local bookstall in Causeway Bay 
in January, 1990, ten 
introductions to Canada in 
Chinese were on sale. Some, 
such as the Guide to Canadian 
Immigration (which has gone 
through five editions since 1987) 
are detailed instructions on 
immigrant eligibility and 
application procedures.' Others, 
such as the Handbook for 
Immigrants to Canada, are 
general introductions to every 
aspect of Canadian life, from the 
government and taxation systems 
to sites of interest, all condensed 
into just over a hundred pages. 2 
The amount of detailed 
information available means that 
would-be immigrants tend to be 
well informed before they make 
an enquiry at the Canadian 
Commission. Those unlikely to 



succeed in gaining an immigrant 
visa know not to apply. In 
1989, formal applications 
received from Hong Kong people 
(29,584) were less than double 
the number of pre-application 
questionnaires filled out (45,229). 
This contrasted with the previous 
year in which 42,052 PAQs were 
filled out for 15,334 formal 
applications. 3 The pass rates in 
both years for those making 
formal applications were high - 
77.3% for 1988, and 74.4% for 
1989/ This high success rate 
can be ascribed partly to good 
advice from Commission staff, 
and partly to the fact that would- 
be immigrants to Canada are 
well-informed of their chances of 
success. Immigration 
publications must take some 
credit for getting the information 
out 

(1) Guide to Canadian Immigration 
(Jianada yimin zhinan), CEMA (Hong 
Kong and Toronto), 1989. 

(2) Handbook for Immigrants to Canada 
(Jiannada yimin shouce), Xiong Dezhang 
(Kowloon), 1989. 

(3) Immigrant Applications Received 
(Post and CLPR Hong Kong), DepL of 
Employment and Immigration, March, 
1990 

(4) Pass Rates (Post and CLPR Hong / 
Kong), ibid. / 

The Basic Law 

The Basic Law (of the Hong 
Kong Special Administrative 
Region of the People's Republic 
of China), in effect the 
constitution for Hong Kong after 
July, 1997, was adopted on April 
4th, 1990 by the Seventh 
National People's Congress 
meeting in Peking. The Law's 
most important stipulations are 
that "the socialist system and 
policies shall not be practised in 
the Hong Kong Special 
Administrative Region, and the 
previous capitalist system and 
way of life shall remain 
unchanged for 50 years (Article 
5); there are specific guarantees 
of the continuation of a wide 
range of freedoms such as 
speech, the press, publication, the 



person, communication, 
conscience, creativity, marriage, 
access to the law (Articles 27- 
35, 37), and of rights of property 
and social benefits (Articles 6, 
36). These grand, lofty 
guarantees are matched by 
stipulations that military forces 
of the Central People's 
Government will be stationed in 
Hong Kong (Article 14), that the 
Region will enact laws to 
prohibit "any act of treason, 
secession, sedition, subversion 
against the Central People's 
Government (Article 23), and 
that the powers of interpretation 
and amendment of the Basic 
Law are vested with the National 
People's Congress in Peking 
(Articles 158 and 159). 

The response to the adoption 
of the Basic Law in Hong Kong 
was muted. Its contents were 
already widely known, and most 
of the articles which aroused 
particular concern had already 
received wide-spread coverage in 
the local press. The only 
elements of some novelty were 
the new regional flag, "a red flag 
with a bauhinia flower 
highlighted by five star-tipped 
stamens" (Article 10), and the 
stipulation, reiterated in many 
articles, that the chief executive, 
the members of the Executive 
Council, the principal executive 
officials, 80% of the members of 
the Legislative Council, the Chief 
Justice of the Court of Final 
Appeal and the Chief Judge of 
the High Court, and most senior 
public servants are to be 
"Chinese citizens who are 
permanent residents of the 
Region without right of abode 
in any foreign country" 
(Articles 44, 55, 61, 67, 101). 

There was little show of 
enthusiasm for the Law. In a 
climate of continuing mistrust of 
the Peking authorities, the 
contents of the Law were less 
significant than the fact that 
public confidence in its intention 
or ability to protect the present 
way of life in Hong Kong is 
very limited. 



10 UPDATE 



Democratization In Hong Kong 



by Sonny Lo 
Hong Kong 

Since the military crackdown 
on student demonstrators in the 
People's Republic of China 
(PRC) on 4 June 1989, 
democratization has become the 
most controversial issue in Hong 
Kong's political development. 
Democratization refers to the 
process of allowing citizens to 
exercise civil or political rights 
which they have never enjoyed 
before. It may be a long 
process with a transitional period 
of at least one generation. 

Prior to 1982, the colonial 
administrators in Hong Kong 
refrained from democratizing the 
political system. Although the 
British Colonial Office supported 
electoral reform in the territory 
after World War II, the Governor 
Sir Mark Young felt that 
membership of the law-making 
body, the Legislative Council 
(Legco), should be confined to 
British subjects and that only 
British should be entitled to vote. 
Governor Young's successor, Sir 
Alexander Grantham, feared that 
democratization could provide an 
opportunity for the Chinese 
Communist Party to influence the 
politics of Hong Kong. It was 
not until the 1970s that the 
Governor Sir Murray LacLehose ^ 
appointed some members at the 
grassroots level such as workers 
to the Legco. 

Democratization of the colonial 
polity has taken place since 1982 
when District Board elections 
were held. District Boards were 
advisory bodies with members 
elected by citizens and appointed 
by the government to discuss 
district affairs such as repairing 
roads and building traffic lights. 
The introduction of District 
Board elections can be jegarded 
as a purposive adaptation to 
changing circumstances. In the 
late 1970s, a large number of 
citizens moved to reside in new 
towns, a demographic change 
that called for the government to 
meet the basic needs of the 
migrants and to allocate 



resources effectively by 
decentralizing the administration. 
Moreover, the colonial authorities 
perceived an urgent need to 
strengthen their rule. The 1970s 
saw the rise of numerous interest 
groups formed by such middle- 
class intellectuals as social 
workers and students, who 
protested the government and 
who urged it to combat 
corruption. In order to curb 
protests and to minimize the 
influence of these interest 
groups, the government 
channelled citizen participation 
into such institutions as District 
Boards. 

After the Sino-British 
agreement on Hong Kong was 
initialled in 1984, 
democratization is no longer an 
occasional phenomenon and 
becomes a British policy towards 
Hong Kong. Originally, the 
Hong Kong government in 1984 
intended to introduce some 
Legco seats directly elected by 
citizens in 1988. Because of the 
opposition from China, the 
colonial policy-makers in 1987 
abandoned such electoral reform. 
In fact, the colonial admini- 
strators, the local capitalists and 
PRC officials formed a triple 
alliance that opposed the 
introduction of direct elections to 
the Legco in 1988. 

In the wake of the June 4 
incident in China, British policy- 
makers decided to introduce a 
bill of human rights in Hong 
Kong and to increase the number 
of legislators elected directly 
through geographical 
constituencies in 1991. These 
decisions were due to Britain's 
desire to curb the anti-British 
sentiment in Hong Kong using 
democratization in exchange for 
the refusal to grant the right of 
abode in the United Kingdom to 
3.25 million Hong Kong British 
subjects, and to respond to the 
domestic criticism from the 
Labour Party, the Social and 
Liberal Democratic Party and the 
media. 

However, there are several 



limits to democratization in Hong 
Kong. First and foremost, PRC 
officials, who have been alarmed 
by the activities of some 
Hongkongers to give financial 
support to mainland Chinese 
protestors in June 1989, use the 
Hong Kong Basic Law to limit 
the scope and decelerate the pace 
of electoral reform in the 
territory before and after 1997. 
After 1997, the power of China's 
National People's Congress will 
probably override that of the bill 
of rights in Hong Kong. 
Second, the disunity among 
Hongkongers is an obstacle to 
democratization. While some 
pro-Beijing capitalists and 
middle-class liberals are at 
loggerheads concerning the pace 
and scope of electoral reform, 
the middle class has also been 
split into pro-China and pro- 
democracy camps. Under these 
circumstances, PRC officials find 
it easy to prevent half of Legco 
members from being directly 
elected by citizens before 1997. 
Third, Britain is still reluctant to 
accelerate political reform in 
Hong Kong at the expense of 
jeopardizing the friendly Sino- 
Bntish relations. Finally, as a 
large number of middle-class 
Hongkongers continue to 
emigrate, middle -class liberals 
who formed such new mini- 
political parties as the 
Democratic Association and the 
United Democratic Party will 
lack a strong foundation to 
influence the direction of 
electoral reform. The June 4 
incident exacerbates the mutual 
distrust between China and the 
Hong Kong people, delegitimizes 
the Basic Law, and convinces 
many Honglcongers that it is 
necessary to adopt an insurance 
policy through emigration. The 
prospect of democratization in 
Hong Kong depends not only on 
China, but also on most Hong 
Kong people whose refugee or 
escapist mentality will inevitably 
weaken the democracy movement 
in the future Special 
Administrative Region. 



UPDATE 11 



Citizenship Bill Sparks Controversy In Britain 

passport will inevitably come to 



by Harriet Clompus 
Leeds 

In mid-April, the British 
parliament voted in favour of a 
controverial bill to grant full 
citizenship to up to 225,000 
(50,000 key workers and their 
dependents) Hong Kong 
residents, despite rebellion in the 
governing Conservative Party's 
ranks. In reaction, the Chinese 
Foreign Ministry stressed that the 
British Government has no right 
to "setUe unilaterally the 
nationality status of Chinese 
citizens of Hong Kong." 

When the British government, 
under pressure from Hong Kong, 
proposed the bill in December 
1989, the Foreign Minister, Mr. 
Douglas Hurd, stressed that the 
bill was to be an "insurance 
policy" giving right of abode to 
professionals. It was argued that 
it would stem the "brain drain" 
and ensure Hong Kong's smooth 
running and stability. 

The 50,000 plus dependents 
was the maximum the 
government judged would be 
acceptable at home and the 
minimum they thought Hong 
Kong would accept. On his 
return from Hong Kong in mid- 
January, Mr. Hurd said "We 
have tried to strike a balance, 
which is disappointing to almost 
everyone in Hong Kong, but we 
believe it is a reasonable 
balance.", I\u 

The government of mainland 
China called the proposal "a 
gross violation" of the Joint 
Declaration. On the 18th of 
January, Minister Lu Ping in 
Canton said consular protection 
would be withdrawn from the 
holders of such passports after 
1997, and moreover that such 
people could only hold up to 
15% of top civil service and 
governmental positions in Hong 
Kong. Gerald Kaufman, the 
shadow foreign minister asked 
Mr. Hurd in session, "Does this 
statement on behalf of the 
Chinese Government not mean 
that if the British plan is 
enacted, everyone awarded a 



Britain in 1997, thus making a 
nonsense of the government's 
claim that the purpose of the 
plan is to anchor people in Hong 
Kong?" 

The bill has received 
vociferous criticism within the 
British government and the Tory 
party. A group of 30 or 40 
right wing dissidents led by 
Norman Tebbit, former 
Conservative party Chairman, 
says the cabinet has been swayed 
by the Foreign Office and that 
Prime Minister Margaret 
Thatcher should be rescued from 
the error of her ways. 
Conservative MP Tony Marlow 
said "We have a multi-cultural, 
multi-racial society that no-one 
has debated or requested. Now 
the government has gaily decided 
to invite another quarter of a 
million in." 

Some centre and left Tory 
dissidents argue that the bill is 
elitist and not likely to restore 
confidence, or unfair in light of 
the long queue of people from 
the Indian Subcontinent waiting 
to join relatives in Britain and 
who must go through the 
processes of the 1981 Nationality 
Act to be admitted. In late 
February a three strong 
Conservative MP delegation went 
to Mrs. Thatcher to tell her of a 
letter signed by over 80 
Conservative MPs saying that 
they would not support the 
government in this Bill. Even 
more Tories had privately 
expressed their opposition to it. 
Many wanted the Nationality Bill 
of 1981, which provides for 
discretionary Entry Certificates 
without full citizenship, to apply 
to the Hong Kong citizens. All 
wanted the Bill to be debated 
clause by clause in the House of 
Commons rather than by 
Committee. 

The Bill also faced opposition 
from the Labour Party. Gerald 
Kaufman, the shadow foreign 
secretary, described the plan as 
"elitist, unfair and impractical." 
On 21st of January it was 
reported in The Guardian that 
Labour had identified three 



categories that it would welcome. 
These were 6,000 Indians who 
could become stateless after 
1997, a similar number of British 
intelligence staff, and a few 
hundred war widows. 
The Guardian noted that "Many 
MPs believe the Party has 
ducked the issue of larger, 
potentially unpopular classes of 
refugee." 

Perhaps the last word on what 
Peter Jenkins, a columnist in The 
Independent has dubbed "The 
Prejudicial Numbers Game" 
should go to a British born 
Chinese who said in a Guardian 
article titled "Passport to the big 
money", "Britain has lost a big 
chance. All the Big Money that 
has been moving out of Hong 
Kong in the last few years has 
gone elsewhere. And even now, 
instead of encouraging it, the 
British government has been 
discouraging them and making 
them feel like beggars." 



The British Nationality Bill 

by Ho-yin Cheung 
and Keung-sing Ho 
Hong Kong 

The details of The British 
Nationality (Hong Kong) Bill, 
published on Wednesday, 4th 
April 1990, were announced in 
Hong Kong by the Director of 
Administration, Mr. Donald 
Tsang Yam-kuen. This passport 
scheme was devised to relieve 
Hong Kong's confidence crisis 
and curb the "brain drain" by 
granting British Citizenship to 
50,000 heads of families and 
their dependents in the run up to 
1997. Mr. Tsang said the whole 
process was designed to ensure 
that all the applicants will be 
treated fairly. 

The quota of 50,000 will be 
divided into four sections: 
General Allocation; Key 
Entrepreneurs; people in 
disciplined services such as the 
police force and prison guards; 
people in intelligence, all of 

NATIONALITY ■ page 15 



V 



12 UPDATE 



Canada - Hong Kong Trade and Investment Overview 

the Territory has also grown. 



excerpts from "Hong Kong," 
External Affairs and International 
Trade, Government of Canada. 

In 1989, Hong Kong was 
Canada's 12th (16th in 1987) 
largest market while Canada was 
Hong Kong's 6th largest 
customer. Two-way trade with 
Hong Kong increased slightly 
(2.5%) in 1989 to reach S2.2 
billion. Canada completed 1989 
with a merchandise trade deficit 
with Hong Kong of SI 11.8 
million, 25% less than that 
registered for 1988. Canadian 
exports have increased from 
S10O4.3 million to $1049.9 
million (up by 4.5%), while 
Hong Kong domestic exports to 
Canada increased by 0.6% from 
$1153.4 million to $1160.7 
million. 

For 1989, exports of valued at 
precious metals and gold Maple 
Leaf coins ($590 million) 
represented 56% of Canadian 
exports to Hong Kong and 
accounted for much of the 
increased trade. Other major 
items were spcl confidential 
transactions ($106.3 million), 
paperboard (S47 million), 
aluminum (S44 million), and 
plastics and plastic articles ($40 
million). 

Hong Kong is an important 
source of investment for Canada, 
with a significant potential for 
growth. In 1989, the total flow 
of investment from Hong Kong 
to foreign countries was 
estimated a $12 billion. That 
Canadian share is estimated to 
represent 20 percent or $2.4 
billion. The value of the 
estimated outflow of capital from 
Hong Kong in 1990 is $20 
billion. Of this amount, one-half 
is considered portfolio 
investment. 

Domestic Political Situation 

The Tiananmen violence in 
China resulted in an accelerated 
loss of confidence by the 
residents of Hong Kong 



regarding post- 1997 arrangements 
when the Territory will become a 
Special Administrative Region of 
the PRC. Since then, the British 
Government has sought 
international support to promote 
confidence in the future of Hong 
Kong after 1997. 

The framework of Hong Kong 
after 1997 has been determined 
by the Sino-British Joint 
Declaration, and by the Basic 
Law (BL), the constitution for 
the Territory which was 
promulgated by the National 
Peoples Congress in March 1990. 
The Basic Law grants 
considerable autonomy in 
economic trade, cultural and 
political affairs for 50 years after 
1997 and outlines procedures for 
a system to govern the Territory. 

While there is dissatisfaction 
with the final version of the BL 
which slows the democratization 
process in the Territory and 
limits the participation, in elected 
positions, of citizens with dual or 
foreign nationality, there is 
appreciation that the framework 
of post- 1997 Hong Kong is now 
more clearly defined. 

Bilateral Relations 

Bilateral relations between 
Canada and Hong Kong are very 
good. Canada is perceived as a 
friend of the Territory and 
supportive of efforts to re- 
establish confidence in Hong 
Kong's future. This was 
reinforced by the Prime 
Minister's statements and actions 
at the 1989 Commonwealth 
Heads of Government Meeting 
and through the Secretary of 
State for External Affairs' 
meeting with representatives of 
the Hong Kong Executive and 
Legislative Councils at the 
CHOGM. 

For the past three years, Hong 
Kong has been Canada's 
principle source of immigrants 
(approximately 19,950 in 1989). 
This trend is expected to 
continue. Canadian interest in 



Since 1985, the estimated 
population of Canadian citizens 
in Hong Kong has increased 
from 18,000 to over 35,000. 
The tens of thousands of 
Canadian citizens of Hong Kong 
origin who travel back and forth 
between Canada and the territory 
are building bridges between the 
two societies and contributing to 
the prosperity of both Canada 
and Hong Kong. 

Canadian officials visited 
London, Hong Kong and Beijing 
in February to express concerns 
about the lack of confidence in 
Hong Kong's future as a cause 
of increased interest in 
emigrating. As a result of the 
frank and positive discussions, 
mutually a series of confidence 
building measures will be 
implemented. 

TABLES - page 14 



Housing 

From page 9 

years, and that an association is 
made between them and 
immigrants from Asia. The 
report analyses the anxieties, 
misconceptions and fears 
involved in the reaction to 
monster homes; its conclusion is 
that the fundamental problems 
are the weakness of Vancouver's 
planning system, and the 
reluctance of some people to 
accept change. Its most 
important indirect revelation is 
that solid data is very hard to 
come by, and that in a situation 
marked by heightened sensitivity 
on one jide (opposed to 
"neighbourhood change") and 
insensitivity on the other 
(builders of monster homes) the 
solutions will lie in attempts at 
mutual understanding and 
reconciliation. 

•this report uses statistics from the BC 
Ministry of Finance and Corporate 
Relations which differ slightly from those 
of the Department of Employment and 
Immigration used by the first report. 



UPDATE 13 



see Overview page 13 



HS Description 

62 Clothing, not knitted 

61 Clothing, knitted 

85 Electrical Equipment 

84 Mechanical Equipment 

91 Clocks, watches and parts 

95 Toys, games, sports equipment 

71 Pearls, precious stones, metals 

52 Cotton 

90 Optical precision equipment 

39 Plastics and plastic goods 

All categories (HS 1-99) 



Hong Kong Trade 

January-December 
thousands of Canadian Dollars 



Imports 



1988 



HS Description 

71 Pearls, precious stones, metals 

99 Spcl, confidential transactions 

85 Electrical Equipment 

48 Paper and Paperboard 

76 Aluminum and aluminum products 

39 Plastics and plastic articles 

84 Mechanical Equipment 

12 Oil Seeds 

55 Man-made staple fibres 

47 Wood Pulp 

All categories (HS 1-99) 

Two Way Trade 

Bilateral Balance 



203 


655 


208 


628 


175 


277 


83 


100 


57 


414 


70 


061 


30 


815 


33 


208 


28 


511 


29 


673 


1 153 


400 



Exports 



1988 



432 


711 


137 


754 


40 


876 


44 


720 


44 


961 


46 


044 


29 


217 


20 


324 


7 


828 


38 


644 


1004 


300 


2157.700 


-149.1 



1989 



1989 



% change 



228 


106 


+12.0% 


223 


005 


+6.9% 


171 


533 


-2.1% 


82 


288 


-1.0% 


55 


969 


-2.5% 


44 


708 


-36.2% 


36 


997 


+20.1% 


33 


806 


+1.8% 


28 


574 


+0.9% 


27 


488 


-7.5% 


160 


725 


+0.6% 



% change 



590 


002 


+36.4% 


106 


331 


-22.8% 


50 


081 


+22.5% 


46 


958 


+4.7% 


43 


958 


-2.2% 


39 


926 


-19.8% 


22 


280 


-23.7% 


15 


835 


-22.1% 


13 


556 


+73.2% 


13 


401 


-65.3% 


049 


927 


+4.5% 


2210.652 


+2.5% 


-111.8 




-25.0% 



UPDATE 14 



J 



Nationality 

From page 12 

whom are in especially sensitive 
positions. About 13% of the 
quota will be granted later to 
those who hold important 
positions and those who failed in 
the first attempt. 

The General Allocation 
section will account for 36,200; 
approximately 72% of a total 
500 (i.e. 1%) will be allocated to 
the important entrepreneurs; 
7,000 (u^ 14%) to the 
Disciplined Service group; and 
6,300 (approximately 13%) to the 
Sensitive Service group. Only 
the British (Hong Kong) Passport 
holders and those who have 
naturalised before the legislation 
is enacted (predicted for late 
summer), will be eligible to 
apply. 

In the point scoring system, 
the highest score is 800. There 
are seven factors to be 
considered in the system: age, 
experience, education and 
training, special circumstances, 
proficiency in English, British 
links and public/community 
service. Age is considered the 
most important factor and 200 
points will be given to applicants 
between 30 and 40 years old. 
Fewer points will be awarded to 
applicants younger than 30 or 
over 40. A maximum of 150 
points (or 50 points each) will 
be allocated for working 
experience, education and 
training. 

Under the General Allocation 
section, sub quotas are planned 
for job allocations including 
business and management 
19,703; accountants 1,615; 
engineers 3,230; information 
service 1,938; medical and 
science 2,584; legal service 323; 
and education 2,907. 

The director of immigration 
will be responsible for codifying 
applications and a steering 
committee chaired by the Chief 
Secretary, Sir David Ford, will 
recommend applicants with the 
highest scores to the Governor 
who will make the final decision 
on the granting of applications. 



HONG KONG-CHINA 
TRADE AND COMMERCE 

by Philip Calvert 
Seattle 

Attention in this quarter 
focused on the economic 
implications of the Basic Law 
and decisions about the structure 
of the Hong Kong government 
after 1997: the expansion of 
China's presence in Hong 
Kong's economic infrastructure; 
attempts in Beijing to deal with 
foreign investment in China; 
policy statements from Beijing 
on the Special Economic Zones 
(SEZs) which have implications 
for Hong Kong both as a future 
Special Administrative Region 
(SAR) of China and a strong 
presence in other SEZs. 

In the first three months of 
1990, through its state-run 
corporations, China increased its 
presence in Hong Kong's airline 
and telecommunications sectors. 
In January, China International 
Trust and Investment Corporation 
(CITIC), which already holds 
12.5 percent of shares in Cathay 
Pacific, announced that it would 
purchase Hong Kong's 
Dragonair. In late February, in a 
deal financed with loans from 19 
international banks, CrTIC 
announced the purchase of 20 
percent of the shares of Hong 
Kong Telecom. It was rumoured 
that there would also be a 
similar expansion into the power 
sector. While speculation 
abounded that CITIC was about 
to purchase an interest in China 
Light and Power (a player in the 
Daya Bay nuclear project), the 
territory, which relies on 
,/ Guangdong for much of its water 
supply, signed a long-term 
agreement with the Guangdong 
provincial government. 

Some observers expressed 
apprehension about this growth 
of China's presence in some key 
infrastructure sectors in Hong 
Kong and raised concerns about 
the outflow of capital for the 
loan supporting CITIC in the 
Hong Kong Telecom deal - 



capital which could be better 
used in direct investment in 
Hong Kong's air and port 
facilities, they argued. In a 
meeting with Hong Kong 
governor David Wilson, Chinese 
Premier Li Peng stated that 
projects in the latter sectors 
already initiated by Hong Kong 
should not expect Beijing's help 
after 1997 and should not be 
funded by the Land Fund set up 
for the government of the Hong 
Kong SAR after 1997.// - 

At the same time, Beijing has 
been sending some mixed 
messages regarding Hong Kong 
investment in China. While the 
Bank of China reaffirmed its 
interest in easing access to loans 
for foreign-funded enterprises, 
particularly those in energy or 
export industries, and the State 
Planning Commission announced 
that it would further encourage 
the growth of export industries 
(particularly textiles and light 
industry), it was also reported 
that China was about to put firm 
controls on foreign-funded, low- 
technology export industries such 
as the Hong Kong financed 
textile industries which have 
sprung up in the SEA's. Other 
reports indicated that foreign 
investors faced increased 
bureaucratic obstructionism with 
the new, more centralised 
economic policies. It appears, 
too, that Jiang Zemin, General 
Secretary of the Chinese 
Communist Party, is directing 
more central government capital 
toward projects in Shanghai (his 
power base) at the expense of 
Guangdong which had benefitted 
from its ties with Jiang's 
predecessor Zhao Ziyang, and 
which, because of it proximity, 
has been the target of the bulk 
of Hong Kong trade and 
investment. 

Trade with Hong Kong was 
the subject of several statements 
in china, including the unrealistic 
proposal that a strategy be 
developed in which each of 

TRADE - page 16 



UPDATE 15 



TRADE AND COMMERCE 

From page 15 

China's coastal regions target a 
particular regional export market, 
with the Guangdong area being 
focused on Hong Kong and 
Southeast Asia. Year end 
reports showed a 12 percent 
increase in Hong Kong exports 
to China and a 25 percent 
increase in re-exports in 1989, 
coupled with a decline in Hong 
Kong's proportion of the total 
foreign investment in 



Guangdong. Hong Kong 
exporters, however, may feel 
threatened by the attempts by the 
Mayor of Shenzhen, an SEZ, to 
have Beijing lift the customs 
wall with Hong Kong and allow 
for exports to the rest of the 
country through Shenzhen. This 
was raised at a February 
conference on SEZs at which Li 
Peng called for increased use of 
market forces in these regions, 
while at the same time 
admonishing them to maintain a 
politically correct altitude toward 



"bourgeois liberalisation". 
Official Chinese interpretations 
of this indicated that Beijing 
would continue to support the 
more liberal policies of the 
SEZs. In light of the several 
indications from Beijing that the 
prosperity of Hong Kong — both 
before and after 1997 ~ is 
essential to China, Beijing's 
treatment of these regions no 
doubt is being closely monitored 
by the residents of China's 
future Special Administrative 
Region. 



NEW BOOKS 

The Basic Law of the Special 
Administrative Region of the People's 
Republic of China, 

by the Consultative Committee for the 
Basic Law of the Hong Kong Special 
Administrative Region of the People's 
Republic of China, 
April, 1990. 

China Tide 

by Margaret Cannon 

Harper & Collins, 1989 

City on the Rocks: 

Hong Kong's Uncertain Future 

by Kevin Rafferty 

Douglas & Mclntyre, 1989 



The Ethos of the Hong Kong Chinese 
by Lau Siu-kai & Kuan Hsian-chi 
The Chinese University Press, 1988 

Hong Kong Countdown 

by George Hicks 

Writer's & Publisher's Cooperative 

Hong Kong Epilogue to an Empire 
by Jan Morris 
Viking-Penguin. 1988 

The Hong Kong Money 

by Tom Fennell & John Demont 

Key Porter 1990 



Hong Kong Voices 
edited by Gerd Balke 
Longman 

Kowtow! 

by William Shawcross 

Chatto Counterblasts 

Mouldering Pearl 
by Felix Patrikeef 
George Philip Ltd., 



1989 



The Other Hong Kong Report 

by Bernard Luk 

The Chinese University Press, 1989 



The Canada and Hong Kong Update is distributed free at your request. Please let us know if you would like to be on our mailing 
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M3J 1P3 







p-1 



T 

■ ASS 1 




■ Ifh rt tfT l I I I M ill A 



CANADA AND HONG KONG UPDATE 



FALL 1990 



Hong Kong Governor Received as Head of State by Canada 

on External Affairs and International 
by Diana Lary Trade and the Right Honourable Joe 

Toronto Clark, Secretary of State for External 

Affairs. At a dinner the same evening 

given by Clark, the stress was on the 

length and warmth of the relationship 

between Hong Kong and Canada. 

There were a number of Canadian 

Hong Kong veterans at the dinner, and 

both Clark and Wilson made 

prominent mention of Canada's help in 

defending Hong Kong during the 1941 

Japanese invasion, in which many 

Canadians lost their lives. 
Canada's warm and serious 

reception of the Governor gave the 

message that all Hong Kong issues are 

taken seriously, and Canada is willing 

to assist, where possible, in their 

successful resolution. There were no 

formal promises of specific action to 

deal with issues over which Canada 

might help, such as Vietnamese 

refugees, granting of delayed visas to 

Hong Kong citizens planning to move 



During his three day visit to 
Ottawa and Toronto at the end of 
May, Sir David Wilson was received 
as a head of state, though, as governor 
of the one of the last remaining 
colonies, he might have been received 
at a lower level. This was the first 
official visit by a Hong Kong governor 
to Canada. Lady Wilson did not 
accompany her husband because of the 
sudden and sad death of her father. 
Sir David's visit to Vancouver 
International Airport scheduled for 
May 25th was cancelled to enable him 
to attend the funeral. 

On the day of his arrival. Sir 
David met with the Prime Minister 
Brian Mulroney, Mr. Marchand, Under 
Secretary of State for External Affairs, 
members of the Standing Committee 




to Canada, or the encouragement of 
return migration after immigrants have 
acquired Canadian citizenship. But, 
there was a sense that Canada is one 
of the few countries to show 
understanding for Hong Kong's 
difficult situation. 

CLARK'S ADDRESS - next page 



In This Issue... 

Immigration Statistics 6 

Status Dislocation 8 

French Courses in H.K. 9 

Return Migration 10 
H.K. in Canada-China Trade 12 

Expo '86 Site 13 

B.C. Author Sky Lee 14 



Crisis in the Gulf 

Temporary Dual Citizenship? 

by Diana Lary 
Toronto 

A strange twist has been added to 
the vexed issue of nationality and dual 
nationality for people with Hong Kong 
passports by the crisis in the Gulf. 
The issue is being followed closely in 
Canada because in future it may affect 
many Canadian citizens. On August 
13th, Albert Lam, who holds a Hong 
Kong (British Dependent Territories 
Citizen [BDTC]) passport, arrived in 



Jordan from Iraq, travelling on a 
document issued by the Chinese 
Embassy in Kuwait which stated that 
he was a Chinese national. Mr. Lam 
made his request after it became clear 
that, as a British national, he would 
not be allowed to leave Iraq. A 
number of other Hong Kong people 
subsequently took the same path to 
leave Iraq and Kuwait. 

On August 15th, Zhou Nan, 
China's chief representative in Hong 
Kong, made a public statement that 
China would offer assistance to any 
Hong Kong people, or "Chinese 
compatriots," who were stranded in the 

GULF CRISIS - next page 



per 

F1029.5 
H6 C36 



Up to Date 

NEWS IN BRIEF 

"The Bauhinia blakeana (Hong 
Kong Orchid Tree) was discovered 
in 1908 at Pok Fu Lam and was 
named after former governor Sir 
Henry Blake. It is among the finest 
of the Bauhinia genus anywhere in 
the world and has been adopted as 
Hong Kong's floral emblem. It is 
widely planted - being propogated 
by cuttings since, like most hybrids, 
its seeds are usually sterile." (Hong 
Kong: The Facts - Flora and Fauna, 
P-l.) 

Emigration - The official emigration 
forecast for 1990 is 55 thousand, 
compared with an estimate of 42 
thousand for 1989. The government 
predicts that 426 thousand [see new 
figure p. 5] will leave Hong Kong 
during 1989-96 for emigration and 
overseas studies. It plans to set up 
employment services overseas to 
entice former Hong Kong residents 
to return to work. (Hong Kong 
Economic Profile, 70, 15.8.90, p.2.) 

Commemoration of Tiananmen - 

more than 100 thousand people took 
part in demonstrations in Hong Kong 
on June 3rd and June 4th to mark 
the first anniversary of the Peking 
Massacre. 

Lawyers - almost 80 percent of 
Hong Kong lawyers plan to leave 
before 1997, according to a survey 
conducted by the Hong Kong Bar 
Association. (Far Eastern Economic 
Review 24.5.90.) 



Gulf Crisis 

From page one 

Gulf. He referred to the section of 
the Joint Declaration which stipulates 
that all people with Hong Kong 
passports are to be considered Chinese 
nationals after 1997. This declaration 
would only make sense if Mr. Lam 
and others rescued from Kuwait and 
Iraq had to surrender their Hong Kong 
passports, which apparently they did 
not. Thus Mr. Zhou's overt insistence 



From page one 

Rt. Hon. Joe Clark's Address 

Governor, Ladies and Gentlemen, 

It is a great honour and a distinct 
pleasure for me to be able to welcome 
you to Ottawa. Yours is an historic 
visit, the first by a Governor of Hong 
Kong to Canada. Your visit provides 
an opportunity to celebrate the strong 
ties between Canada and Hong Kong, 
ties of history, of trade, of family, and 
of trust 

We are not strangers. The links 
between Canada and Hong Kong 
stretch back over the centuries to the 
days of the British Empire, the days 
of sailing ships, a period when 
thousands of Southern Chinese arrived 
in British Columbia and contributed so 
much to the building of our young 
nation. 

The complex history of ties 
between Hong Kong and Canada also 
extends to earlier, sad days of conflict. 
In 1941, Canadian troops were called 
upon to defend Hong Kong. 550 
Canadian soldiers died during that 
conflict. They are not forgotten; every 
December their sacrifice is 
commemorated at Sai Wan cemetery. 

Hong Kong owes its origins to its 
role as an entrepot post in the China 
trade, a role which the territory 
continues to fulfil with brilliance. It is 
out of this role that a strong trading 
relationship across the Pacific 
developed with Canada. That trading 
relationship continues and grows to 
this day. Two-way trade stands at 
over $2.2 billion, and Hong Kong 
investment in Canada was $2.4 billion 
in 1989 alone. 



on single (Chinese) nationality is 
contradicted by the de facto 
recognition of dual nationality. This 
issue will undoubtedly continue to 
generate intense interest. 

The Chinese Embassy in Kuwait 
also assisted Taiwanese staff members 
of the BES Engineering Corp to leave 
Kuwait for Jordan by issuing them 
with PRC passports. 

n.b. In Canada the lerm citizenship is used, in 
the United Kingdom and Hong Kong the normal 
term is nationality. 



But our relationship goes well beyond 
the ties of trade and investment. An 
important bridge between us has been 
the flow of people. From modest 19th 
century beginnings, emigration to 
Canada has expanded dramatically. 
One in seven new immigrants to 
Canada now comes from Hong Kong. 
Hong Kong is our largest single 
source of new citizens. Hundreds of 
thousands of Canadians of Hong Kong 
origin are contributing their 
tremendous talents and hard work in 
almost every field of human 
endeavour. 

These new Canadians are helping 
to build a modern and dynamic and 
multicultural Canada. We are proud 
of their contribution. That contribution 
not only enriches Canadian society; it 
is also a business asset, an invaluable 
resource for Canada as we seek to 
compete successfully and develop new 
markets in the Pacific. 

The flow of people has not been 
just one way. The Canadian 
population in Hong Kong now exceeds 
30,000. That is the largest Canadian 
community in Asia. In addition, some u 
70,000 Hong Kong graduates of 
Canadian universities live and work in 
Hong Kong, enhancing the strong 
personal links between our two 
societies. 

Both of us depend heavily on trade 
for our prosperity and security. The 
people of Hong Kong are the singular 
traders of Asia and your city remains 
the best entree to the Asia market. 
Canada and Hong Kong share a 
common commitment to open markets 
and free trade around the world. And 
in the Pacific region, we share an 
interest in promoting prosperity 
through more liberal trade in goods 
and services. 

Our shared interest in freer trade 
was demonstrated by the fact that the 
Hong Kong business community was 
among the first to recognize that the 
Canada-US Free Trade Agreement 
would have a positive impact on 
Canadian trade with all our partners. 
The Free Trade Agreement will 
continue to act as a catalyst for the 
Canada/Hong Kong economic 
partnership. 



CLARK'S ADDRESS - page 3 



2 UPDATE 






CANADA AND HONG KONG UPDATE 



Editors 


Diana Lary 
Stephanie Gould 


Illustration 


Joe Burdzy 


Design 


Stephanie Gould 


Contributors 


Philip Calvert 
Ho-yin Cheung 
Harriet Clompus 
Keung-sing Ho 
Tan Xiaobing 
Chow Ying Wong 



Canada and Hong Kong Update is 
published three times a year by the 

Canada and Hong Kong Project, 
Joint Centre for Asia Pacific Studies, 
Suite 200K, Administrative Studies Bldg. 
York University, 4700 Keele St., 
North York, Ontario, 
CANADA M3J 1P3 

Telephone: (416) 736-5784 
Fax: (416) 736-5687 

Opinions expressed in this newsjoumal 
are those of the author alone. 

CANADA AND HONG KONG PROJECT 



Director 
Coordinator 

Advisory Board 



Diana Lary 
Stephanie Gould 

Maurice Copithorne 
Denise Chong 
Dr. Bernie Frolic 
John Higginbolham 
Dr. T.G. McGee 
Graeme McDonald 
Jules Nadeau 
Dr. William Saywell 
Dr. Wang Gungwu 



We want to thank the Donner Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 



In The Next Issue.... 

1990 Immigration Statistics 
Problems of Interpreting Statistics 
Settlement in Manitoba 
Hong Kong and Japan 

This publication is tree. Please call or write 
lo us for past or Mure Issues. 



From page 2 

Your Excellency, (he growth of 
Hong Kong from a quiet harbor on the 
South China Sea to a dynamic and 
creative center for global finance, trade 
and industry has been an extraordinary 
triumph of human will and ingenuity. 
It is also testimony to the values of 
human freedom and the rule of law. 

Canada has an abiding interest in 
the shape of post- 1997 Hong Kong. 
The undertakings between Great 
Britain and China, reflected in the 
Basic Law, provide a framework for 
the future. But that future will only 
be bright if these undertakings are 
observed in their spirit as well as their 
letter. 

There is no doubt that confidence 
in Hong Kong was shaken by the 
tragic events in the Chinese capital in 
June, 1989. You have already taken 
many positive steps to face this 
challenge. Canada strongly supports 
these steps - your bold infrastructure 
projects, your accelerated pace of 
democratization and your Bill of 
Rights. 

As you face the future, you can be 
assured of our steadfast support. 
Canada stands ready to help. Let me 
provide some examples. 

- We are exploring with Britain and 
China the establishment of a wide 
network of bilateral agreements 
between Hong Kong and Canada. 
This network would preserve the 
informal ties which have developed 
between Canada and Hong Kong. We 
believe this would be fully consistent 
with the Sino-British Joint Declaration. 
The purpose of that network will be to 
make it clear that the unique role of 
Hong Kong will not change in 1997. 

It is our goal to ensure that at the turn 
of the century the opportunities for 
cooperation between Canada and Hong 
Kong are the same then as they are 
now. 

- In 1988, we signed our first bilateral 
agreement with Hong Kong and there 
is now direct air service between 
Canada and Hong Kong. 

- In April of this year, we initialled a 
bilateral mutual legal assistance treaty. 
That agreement, the first ever entered 
into by Hong Kong, will promote co- 



operation in the fight against the 
international drug trade. 

- As Hong Kong drafted its Bill of 
Rights, we seconded a senior justice of 
the Federal Court to Hong Kong to 
assist in drafting that important 
document. Judge Strayer's 
contribution is a demonstration of our 
commitment to providing expertise as 
Hong Kong builds its own durable and 
democratic institutions. 

- We have initiated discussions 
designed to put in place an exchange 
program of officials between our two 
governments. This would enable 
young leaders to gain familiarity with 
the Canadian approach to the 
regulation of financial institutions, 
broadcasting, and transport. 

- Canada and Hong Kong have entered 
into discussions of a film co- 
production agreement. 

- And after the conclusion of the 
multilateral trade negotiations, we will 
explore a financial market access 
agreement whereby the existing 
environment governing financial 
institutions in Hong Kong is preserved. 

- Finally, Canada believes strongly that 
Hong Kong should participate in the 
emerging web of regional institutions. 
This includes Asia-Pacific Economic 
Co-operation and the Pacific Economic 
Conference. We also strongly support 
Hong Kong's participation in other 
international agencies, including the 
GATT and OECD. 

Your Excellency, Canada's 
commitment to, and our faith in, the 
future of Hong Kong is unwavering. 
We have made this clear to both the 
British and Chinese governments. We 
are prepared to do our part to ensure 
that Hong Kong's future remains 
bright and that the relationship 
between us continues to be strong and 
to grow. 

Your Excellency, if you take back 
one message to the people of Hong 
Kong, let it be a clear and simple one: 
that Canada is committed to your 
success, and that we will stand by you 
faithfully in the critical years which lie 
ahead. 



UPDATE 3 



Governor Wilson's Reply 

Thank you very much for your 
kind words. You have given us a 
truly magnificent welcome to Canada. 

I believe I am the first serving 
Governor of Hong Kong to visit this 
fine capital city. It is therefore right 
that I should, on behalf of the people 
of Hong Kong, express our thanks for 
everything that Canada and Canadians 
have done for our community over 
many years. Many years it is. In this 
context, I would like to pay particular 
tribute to the gallantry of the men of 
the Royal Rifles and Winnipeg 
Grenadiers who came to join in the 
defence of Hong Kong in 1941 with 
such conspicuous bravery. Their 
sacrifice is not, and will not be, 
forgotten. 

In more recent times, and happier 
circumstances, Canada has continued 
to make a major contribution to Hong 
Kong's welfare and prosperity. The 
Canadian business community in Hong 



Kong, now at least 11,500 strong, is 
flourishing and continues to expand. 
Trade between us is booming. We are 
developing close links in co-operation 
against drug trafficking. We have 
reached a new agreement on air 
services between Hong Kong and 
Canada, which provides for increased 
air links on both sides. And, as you 
know, we hope to open a new 
economic and trade office in Toronto 
before too long. 

Standing in this magnificent 
building, a wider theme occurs to me. 
That is the mingling of civilisations 
and traditions. In this respect Hong 
Kong and Canada have much in 
common. We are both multi-cultural 
societies. We share the advantages of 
creativity and vitality this brings. We 
share a high regard for human rights 
and values. We both enjoy vigorous 
free market economies. We are both 
international in our outlook. We are 
both major trading societies on the 



Pacific Rim, an area of enormous 
economic opportunity now and in the 
decades ahead. 

Perhaps all these shared 
experiences explain why we in Hong 
Kong feel that Canada understands us, 
and our special circumstances, so well. 
We have developed a close 
relationship cemented by trade, by 
investment, by education, and by 
personal ties. We are most grateful 
for the positive and active support 
which your government has offered to 
Hong Kong. You have a major 
economic and cultural stake in Hong 
Kong and its future prosperity, and we 
hope that you will continue to take 
good care of, and a close interest in, 
the investment your community has 
made. It is reassuring to know that, 
whatever the future may hold, we have 
a good friend across the Pacific. I 
hope and believe you will find Hong 
Kong has much to offer in return and 
that this Pacific partnership will 
endure. 



Destinations for Hong Kong People 



by Ho-yin Cheung 
Hong Kong 

The migration climate in Hong 
Kong has drawn international attention. 
The promulgation of the British 
Nationality (HK) Bill, which will grant 
50 thousand heads of families and 
their dependents British citizenship has 
stirred up controversy in Hong Kong 
and overseas. Provisions similar to 
those in the British Nationality Bill 
have been made by many countries. 

It is widely criticized for its 
stipulations in favour of businessmen 
and professionals. Under the package, 
professionals will earn points for the 
number of years experience they 
possess in their fields. Years of 
experience for people in business will 
be linked directly to their salaries, 
with the most points awarded to those 
with the highest earnings. It seems 
likely that high income earners and 
those between 30 and 40 years of age 
with experience in their field will have 
the best chance of obtaining British 
passports. In the territory, such 
mechanisms are seen as prejudicial to 
the general populace and have aroused 



a pervasive sense of dissatisfaction 
with the package. 

The West German Government has 
promised right of abode to managerial 
staff and their families working for the 
34 German companies in Hong Kong. 
However, the stringent requirements 
mean it is likely that only a small 
number will be granted residency 
rights. It is alleged that France, 
Belgium and Luxembourg have 
announced similar arrangements 
without specifying the number of 
people who might benefit. 

The American Chamber of 
Commerce has sent a delegation to 
Washington to lobby for more 
immigration visas for Hong Kong 
people. AmCham wants the number 
of visas to be increased from 5 
thousand to 20 thousand annually and 
more visas to be allocated to 
employment and professional 
categories. The legislation is before a 
recently approved congressional 
committee in the U.S. 

A record 12 thousand people have 
applied for visas to emigrate with the 
Australian consulate in Hong Kong. 
(The actual number of people covered 



in the application would be about 24 
thousand.) But immigration to 
Australia will be cut by 10 percent in 
the coming year to make room for 
about 20 thousand mainland Chinese 
students. The consulate expects that 
about 13 thousand immigrant visas 
will be issued to Hong Kong 
applicants. 

Singapore has adopted a rather 
different migration policy toward Hong 
Kong people. Hong Kong's skilled, 
clerical workers, blue-collar technicians 
and craftspeople are on its list of 
favoured migrants. Out of the 
migration quota of 25 thousand Hong 
Kong people, 13 thousand are 
allocated in the above mentioned 
categories. The actual relocation of 
people from Hong Kong to Singapore 
is so far about 400. 

There are estimates that as many 
as one fifth of emigrants are being 
lured back by money, friends and the 
quality of life in Hong Kong. 
Residency rights in a foreign country 
appear to be a necessary insurance 
policy for Hong Kong people. 



4 UPDATE 



Barbara McDougall Visits H.K. 



by Diana Lary 
Toronto 



J 



Canada's Minister of Employment 
and Immigration, Barbara McDougall, 
visited Hong Kong in early September 
to familiarise herself with the 
emigration situation there and to meet 
officials of the H.K. Government and 
the Canadian Commission. Her visit 
coincided with that of the Australian 
Minister of Immigration, Gerry Hand. 
The ministers met the governor 
together on September 3rd. Neither 
spoke of the content of the meeting, 
though there were reports they had 
been urged not to try to entice "the 
cream of Hong Kong" away. 

In a speech, McDougall said that 
while the current slow down in 
processing applications and issuing 
visas had to do with the fact that the 
global figure of immigrants to Canada 
for 1990 had been reached, and did 
not relate specifically to Hong Kong, 
she also indicated that there would be 
no special "insurance scheme" 
(preferential visa treatment). "A basic 
requirement for all immigrants is that 
they share a commitment to Canada 
and to Canada's future. That is why 
we cannot, and will not, allow our 
immigration programs to be used 
simply as a kind of 'insurance policy'. 

"There has been speculation in the 
media recently that we are cutting 
back on immigration, specifically from 
Hong Kong. I cannot stress too 
strongly that this speculation is false. 

"Because the number of immigrants 
coming to Canada has been much 
higher than expected this year, we 
have been forced to temporarily slow 
down visa issuance. But this 
temporary slow down is not a cut 
back, and it is definitely not aimed at 
Hong Kong. It applies universally to 
all countries, and it is intended to give 
our service and support agencies time 
to adjust to increased demands," said 
McDougall. 

During the visit, the H.K. 
government estimate of the number of 
people who will leave Hong Kong in 
1990 was published. At 62 thousand, 
it is nearly 50 percent above the figure 
for 1989. Government spokesman 
Mike Rowse said it consists largely of 
professionals between 25 and 40, 
people the government considers most 
essential to maintain stability in Hong 
Kong before and after 1997. 



British Nationality Proposals 

In late July, during the week that 
royal assent was given to the British 
Nationality (HK) Bill, which will grant 
British nationality to 50 thousand 
heads of families and their dependents, 
the junior Foreign Office Minister, 
Francis Maude, visited Peking, to try 
to mollify Chinese antipathy to the 
scheme. On July 25th, Maude had a 
public meeting with the Chinese 
premier, Li Peng, the man considered 
chiefly responsible for the Peking 
Massacre last year. Maude's visit was 
a publicity coup for Mr. Li, who has 
had few senior visitors this year, but 
was criticised in England as 
'kowtowing' to Peking. The visit did 
not succeed in muting Chinese 
opposition to the British nationality 
scheme; the day after Maude left 
Peking, the Chinese Ministry of 
Foreign Affairs put out a statement 
which sternly reiterated Peking's 
rejection of it. 

Maude's visit coincided with the 
trial in Hong Kong of five members 
of the recently established United 
Democrats of Hong Kong, who were 
charged with the illegal use of loud 
hailers during protests in February 
against the Basic Law. They were 
convicted on July 27th. The trial was 



seen in Hong Kong as an effort on the 
part of the Hong Kong government to 
reassure Peking that Hong Kong would 
not be used as a base of "subversive" 
activities. It was not immediately 
clear whether the pettiness of the 
charges, launched under an antiquated, 
little used statute, was a demonstration 
that any act of defiance to China 
would be punished, or whether it was 
meant in a subtle way to ridicule 
Chinese fears of subversion. 

In the same week that Maude 
visited Peking, there was a rush in 
Hong Kong to apply for registration as 
British Dependent Territories citizens. 
Thousands of people tried to register 
before the deadline of July 27th; 
registration is a minimum qualification 
for application for British nationality. 
The process of selecting the 50 
thousand heads of household will 
begin in December, 1990. One and a 
half million application forms will be 
distributed in November. The first 
passports will be issued at Easter, 
1991. There is some concern that if 
the Chinese government continues to 
refuse recognition of these passports 
while the holders remain in Peking, 
the desired effect of the scheme of 
allowing people to remain in Hong 
Kong will be reversed, and passport 
holders will instead be forced to use 
them to leave Hong Kong. 



Xu Jiatun Leaves Hong Kong 

by Diana Lary «/ 
Toronto 

Many observers of the Hong Kong 
scene were startled to hear in May 
that Xu Jiatun, former director of the 
New China News Agency in Hong 
Kong, and de facto Chinese chief 
there, had left for California on an 
extended vacation. Xu has been a 
member of the Chinese Communist 
Party for 54 years, and at the time of 
his departure was still a member of its 
Central Committee. Xu retired from 
his position in February under a cloud 
because of his loss of control over 
previously pro-Communist elements in 
Hong Kong in May and June, 1989. 
On his departure he was publicly 
humiliated by his successor, Zhou 
Nan, who made a point of not 
thanking Xu for his many years of 
work in Hong Kong. Xu had done a 
good job on behalf of China, and had 
gained a measure of popularity in 
Hong Kong; his apparent 
understanding of capitalism - he 



described the modern capitalist system 
as "a great invention of human 
civilisation" - was both surprising and 
reassuring to many Hong Kong people. 
The fact that his departure was 
transformed into a dismissal conveyed 
another clear message that "niceness" 
in terms of China's treatment of Hong 
Kong was no longer in the cards. Xu 
was ordered to return to his home in 
Nanjing for his retirement; only his 
wife went - he and other members of 
his family went off to the States. 
Both the United States and the 
Chinese governments were careful not 
to refer to his move as a defection, 
though a three year tourist visas is 
unprecedented. Whether a defection 
or not, Xu is the most senior person 
to leave China since Lin Biao's 
attempt to fly out of China in 1973, 
an attempt which ended in his death 
when his plane was shot down. Xu's 
departure had a disturbing effect in 
Hong Kong, where the disillusionment 
of a top Chinese official gave no 
cause for encouragement about China's 
attitude towards Hong Kong. 



UPDATE 5 



Demographic Characteristics of Hong Kong Immigrants 



by Diana Lary 
Toronto 



y 



In any migration, the characteristics of the migrants are 
determined in part by the nature of the applicants, and in 
part by the immigration policies of the host country. The 
pressure to leave Hong Kong before 1997 is an extra factor 
of major significance in the determination of who is 
emigrating and who is staying in the territory. Under 
different circumstances, many of the people now migrating 
would seem too well established to want to move. The 
demographic statistics from Employment and Immigration 
Canada cited below, give us some indication of what types 
of Hong Kong people are now immigrating to Canada. The 
figures are for immigrants whose country of last permanent 
residence (CLPR) was Hong Kong and who landed in 
Canada in 1988 and 1989; they do not yet include people 
who applied to emigrate in 1989, when the number of 
applications went up dramatically (see last Update). 

In looking at statistics for only two years, it is not easy 
to make worthwhile comparisons. These figures should be 
taken as an indication of the overall composition of the 
group, rather than as signs of significant changes from one 
year to the next. 

Principal immigrants (those who made the successful 
applications) accounted for somewhat under half the total 
number of immigrants in each year. This is consistent with 
the global proportion of principal to spouse and dependents 
of 1:1.2. 





1988 % 


1989 % 


Principal 


10353 (44.47) 


8407 (42.33) 


Spouse 


5400 (23.19) 


4359 (21.95) 


Dependents 


7528 (32.34) 


7083 (35.66) 


Total 


23281 


19861 



Sex 



Females slightly outnumbered males by 52 percent to 48 
percent in both 1988 and 1989. The percentage of female 
principal immigrants is unusually high - 41 percent in 1988, 
and 43 percent in 1989. Quite a large number of female 
principal immigrants sponsored their husbands: in 1988, 
10.23 percent of all male immigrants were sponsored 
spouses; in 1989, 10.08 percent. Wives made up 35.09 
percent of all female immigrants in 1988; 32.59 percent in 
1989. This pattern is in part a reflection of employment 
demand; some of the categories in which there was high 
demand are ones dominated by women - viz. secretaries. 



Male 



Female 



1988 






Principal 


6059 


4294 


Spouse 


1140 


4260 


Dependent 


3943 


3585 


Not stated 






Total 


11142 


12139 



1989 






Principal 


4782 


3625 


Spouse 


948 


3411 


Dependent 


3661 


3422 


Not stated 


5 


7 


Total 


9396 


10465 


Marital status 







Approximately half of all immigrants in both 1988 and 1989 
were married: in 1988, 50 percent were married, 46.8 
percent single; in 1989, 48.6 percent were married, 48.3 
percent single. While these statistics do not indicate whether 
spouses came to this country together, they do suggest, when 
dependent children are taken into account, an immigrant 
group heavily concentrated in families. 





1988 


1989 


Single 


10914 


9603 


Married 


11645 


9656 


Widowed 


503 


437 


Divorced 


168 


118 


Separated 


51 


47 


Total 


23281 


19861 



Ages 

The current migration is concentrated in the most productive 
years: 50 percent of the immigrants in 1989 were between 
25 and 44; in 1989, 48 percent. People over 45 accounted 
only for 15.65 percent in 1988; 17.25 percent in 1989. This 
is a standard age distribution for any immigrant group, and 
indicates that the pressure to leave Hong Kong has not 
greatly distorted normal patterns of migrant behaviour. 

0-14 15-24 25-44 45-64 65+ 

1988 5126 2825 11686 2911 733 23281 

1989 4132 2769 9532 2723 705 19861 



Language abilities 

Over half the Hong Kong immigrants who landed in 1988 
and 1989 spoke English; for principal immigrants the 
percentages were even higher (77.12 percent in 1988; 70.82 
percent in 1989). There was a decline in the proportion of 
English speakers from 1988 to 1989. The number of French 
speakers, both people who spoke French only, and people 
who were bilingual, did not reach 1 percent of the total in 
either year. The number of people who speak only their 
mother tongue (predominantly Cantonese) was high, and rose 
proportionately between 1988 and 1989. This rise can be 
attributed to the rise in the proportion of people coming in 
under the family class, from 13.7 percent in 1988 to 22.9 
percent in 1989 (see last Update, p.2). 



6 UPDATE 



Mother 
Bilingual tongue 



Total 



English French 
1988 

Principal 7984 49 66 2254 10353 

Spouse 3374 6 18 2202 5400 

Dependent 1718 1 7 5802 7528 

Total 13076 56 91 10058 23281 

% (56.17) (0.24) (0.39) (43.20) 

1989 

Principal 5954 21 57 2375 8407 

Spouse 2366 3 11 1979 4359 

Dependent 1905 2 7 5169 7083 

Not stated 8 4 12 

Total 10233 26 75 9527 19681 

% (51.52) (0.13) (0.38) (47.97) 



Educational levels 

As a rule. Hong Kong people put great stress on education, 
though opportunities for university education have been 
limited by the fact that until now there have only been two 
small universities. The number of immigrants with one or 
more university degrees is not striking, (3597 or 15.05 
percent in 1988; 2340 or 11.79 percent in 1989), but if 
principal immigrants are taken separately, then the figures 
for university graduates are 2869 (27.71 percent) in 1988, 
1681 (20 percent) in 1989. The number of people with 
trade certificates, non-university post-secondary training or 
university diplomas is quite substantial: 5959 or 25.60 
percent in 1988; 4807 or 24.22 percent in 1989. The number 
of principal immigrants with such training was 3980 or 
38.44 percent in 1988; 3116 or 37.10 percent in 1989. At 
the bottom end, in 1988, 3503 (33.83 percent) principal 
immigrants had secondary school education or less, as did 
3119 (57.75 percent) spouses and 7101 (94.32 percent) 
dependents (the great majority of dependents would be 
infants or children still in school). In 1989, the figures for 
secondary school education or less were: principal 
immigrants, 3603 (42.85 percent), spouses, 2803 (64.3 
percent) and dependents 6292 (88.83 percent). 





1988 % 


1989 % 


None 


2660 (11.43) 


2031 (10.23) 


Secondary or less 


11063 (47.52) 


10672 (53.76) 


Trade certificate 


3282 (14.10) 


2527 (12.73) 


Non-university 


1974 (8.48) 


1458 (7.35) 


Univ, non-degree 


703 (3.02) 


822 (4.14) 


B.A. 


2665 (11.45) 


1740 (8.77) 


Post-graduate 


192 (0.82) 


123 (0.62) 


Master 


702 (3.02) 


445 (2.24) 


Ph.D. 


38 (0.16) 


32 (0.16) 


Not known 


2 




Total 


23281 


19861 



Principal immigrants: education 

1988 % 
None 384 (3.71) 

Secondary or less 3119 (30.13) 
Trade certificate 2255 (21.78) 
Non-university 1354 (13.08) 
Univ. non-degree 371 (3.58) 
B.A. 2137 (20.64) 

Post-grad 127 (1.23) 

Master 579 (5.59) 

Ph.D. 26 (0.25) 

Not known 1 

Total 10353 

Spouses: education levels 

None 203 (3.76) 

Secondary or less 2916 (54.00) 



levels 

1989 

272 

3331 

1728 

986 

402 

1231 

89 

338 

23 

7 

8407 



(3.24) 
(39.65) 
(20.57) 
(11.74) 
(4.79) 
(14.65) 
(1.06) 
(4.02) 
(0.27) 



Trade certificate 

Non-university 

Univ. non-degree 

B.A. 

Post-grad 

Master 

Ph.D 

Not known 

Total 



921 (17.06) 
576 (10.67) 
70 (1.30) 
(9.67) 
(1.07) 
(2.26) 
(0.22) 



156 (3.58) 

2647 (60.72) 

639 (14.66) 

376 (8.62) 



522 

58 

122 

12 



5400 



81 

347 

27 

78 

8 



4359 



(1.86) 
(7.96) 
(0.62) 
(1.79) 
(0.18) 



Dependents: educational levels 

None 2073 (27.54) 

Secondary or less 5028 (66.80) 



Trade certificate 

Non-university 

Univ. no degree 

B.A. 

Post-grad 

Master 

Ph.D 

Not known 

Total 



Occupation 



106 

44 

262 

6 

7 

1 



1 

7528 



(1.41) 
(0.58) 
(3.48) 
(0.08) 
(0.09) 
(0.01) 

(0.01) 



1600 (22.60) 
4692 (66.28) 
160 (2.26) 
95 (1.34) 
335 (4.73) 
160 (2.26) 
7 (0.10) 
29 (0.41) 
1 (0.01) 
4 (0.04) 
7083 



Listed here are the occupations people hope to take up on 
arrival in Canada. To some extent they reflect occupational 
demand (viz. secretarial). Independent immigrants applying in 
categories of high demand get more points than do people 
applying in areas of low demand. There were some changes 
in the occupational composition of the immigrant group from 
1988 to 1989. The percentage of entrepreneurs rose from 
4.67 percent in 1988 to 6.48 percent in 1989, while the 
managerial and administrative category declined from 12.35 
percent to 8.61 percent. New workers rose from 4.35 
percent to 10.12 percent; this category is made up largely of 
people coming into Canada as dependents in the family class 
or as refugees. These figures do not differentiate between 
principal immigrants and their spouses or dependents; it can 
be assumed that the vast majority of those listed as 'other 
workers' are children. 

DEMOGRAPHICS - next page 

We would like to thank Meyer Bur stein, Director, Strategic 
Planning and Research, Employment and Immigration 
Canada, for his help in making these statistics available to 



UPDATE 7 



"Place" and "Face": One 



by Wendy Tang 
Toronto 



V 



Many recent immigrants from 
Hong Kong are accomplished 
professionals and entrepreneurs. Yet 
too much attention has been focused 
on their economic power. Despite 
their previous achievements, these 
people still face the challenge of re- 
establishing their former social status 
in this country. As Max Weber once 
pointed out, mere economic power is 
by no means the sole basis of social 
honor. New immigrants, with few 
exceptions, experience downward 
social mobility. My own experience, 
and that of many others I know, 
seems to bear this out. 

An immigrant who has an 
academic or professional degree from 
a North American university should be 
able to secure a position comparable 
to his former occupational attainments. 
It is very difficult, if not impossible, 
for those immigrants who are "self- 
made" individuals to do the same. 
Experience is all they have, but it is 
not Canadian experience. 

In 1985, armed with fifteen years 
of experience at an executive level, I 
had to start from the very beginning at 
York University as a 
clerk/typist/receptionist to gain 
"Canadian" experience. It was only 
after many good supervisory reports on 
my first few assignments that I was 
approached with an offer of a 
permanent and better position. Of 
course, I did have another option at 
the time: working in Canada for a 
Chinese employer at a lower salary 
but with higher status. 

In addition to demotion in 
occupational status, the new immigrant 
experiences self-perceived demotion 
which is attributable to the structure of 
Canadian society. Hong Kong is a 
highly stratified society with a good 
supply of cheap labour. Consequently, 
the small middle class, to which the 
great majority of immigrants from 
Hong Kong belong, enjoys many 
services and comforts for just a tiny 
fraction of their income. In the 
workplace, for example, administrative 
personnel are served by a large pool 
of "minor staff who perform all kinds 

8 UPDATE 



Immigrant's Experience 

of menial tasks such as photocopying, 
message delivery, and filling teacups. 
Thus, immigrants from Hong Kong 
starting out in Canada may perceive a 
loss of status as they suddenly find 
themselves deprived of the personal 
benefits derived from cheap labour. 
Worse still, they may find themselves 
performing menial tasks for others! 

Another factor influencing the 
immigrant's employment status is the 
loss of business, familial, and social 
networks: the old-boy connection, 
personal links, or what would be 
referred to in Chinese as guan-xi . The 
new immigrant can no longer "pull 
strings" because he or she no longer 
has pals in high places. So, instead of 
picking up the phone and calling a 
friend in the government department 
responsible for employment, he/she 
now has to line up with the "common" 
people early in the morning. This 
scenario is duplicated in the 
workplace. The immigrant has no 
more properly positioned "good 
friends" to give him or her "face." 
Everything is done in a formal and 
business-like manner. Rules are to be 
observed down to the letter, which is 
especially true in a unionized work 
environment. Guan-xi may not be 
particular to the Chinese, but the fact 
that one is not a "local boy or girl" 
denies one access to local networks. 



This situation inevitably gives rise to 
the perception of lost status, especially 
for someone who is used to being 
"somebody." 

Higher social status generally 
results in special privileges and 
unequal access to opportunity. Its 
loss, therefore, should not be regretted. 
Unfortunately, status is often correlated 
positively with self-esteem. The loss 
of status and a diminished sense of 
self-esteem is intensified by feelings of 
personal inefficiency in a new 
environment. Psychologically 
disoriented, some individuals react 
with resignation while forcing their 
hopes onto their children. Some 
individuals find compensation in other 
aspects of life. Some turn into 
incessant complainers. And still others 
choose to postpone the inevitable by 
staying in Hong Kong as long as 
possible while sending the family over 
first. 

Canada needs the human and 
economic resources provided by 
immigrants from Hong Kong, while 
Hong Kong emigrants believe they 
need a haven from the risks of the 
change of government in 1997. A 
healthy relationship between new 
immigrants from Hong Kong and the 
Canadian people cannot, therefore, be 
left to chance but must be engineered 
with care and intelligence. 



Demographic Characteristics 










from page 7 












1988 


% 


1989 


% 


Entrepreneur 


1087 


(4.67) 


1276 


(6.48) 


Managerial & Admin. 


2876 (12.35) 


1696 


(8.61) 


Science, engineering 


1170 


(5.02) 


493 


(2.5) 


Social Science 


283 


(1.22) 


131 


(0.66) 


Religion 


19 


(0.18) 


22 


(0.11) 


Teacher 


148 


(0.64) 


95 


(0.48) 


Medicine & health 


335 


(1.44) 


215 


(1.08) 


Arts 


275 


(1.18) 


242 


(1.22) 


Sports & recreation 


4 


(0.02) 


2 


(0.01) 


Clerical 


2604 (11.19) 


1872 


(9.43) 


Sales 


912 


(3.92) 


632 


(3.18) 


Service 


325 


(1.4) 


344 


(1.73) 


Farming 


8 


(0.03) 


4 


(0.02) 


Fishing, hunting 


7 


(0.03) 







Forestry 


1 


(0.00) 







Mining 





(0.00) 







Processing 


20 


(0.09) 


21 


(0.11) 


Machining 


27 


(0.12) 


23 


(0.12) 


Fabricating 


361 


(1.55) 


250 


(1.26) 


Construction 


49 


(0.21) 


58 


(0.29) 


Transport 


31 


(0.13) 


18 


(0.09) 


Material handling 


23 


(0.1) 


11 


(0.06) 


Other crafts 


53 


(0.23) 


55 


(0.28) 


New workers 


1013 


(4.35) 


1994 (10.04) 


Other workers 


11650 (50.04) 


10407 (52.40) 


Tolal 


23281 




1986 





French Language Courses More Popular Than Ever in Hong Kong 



by Francis Allard 
Toronto 



si 



As central as they are to helping 
define the political climate in Canada, 
language issues also play an important 
role in the nation's immigration policy. 
While it is generally less important in 
determining the outcome of 
applications by investors or 
entrepreneurs, language proficiency 
may be very important for other 
immigrants in the independent class. 
While Canada's national immigration 
policy and Quebec's provincial one 
use a similar point system, the number 
of points allocated in each category 
differs. In the language category, out 
of 15 points, Canada allocates a 
maximum of nine points for the 
applicant's knowledge of French or 
English (whichever the applicant is 
most fluent in), with another maximum 
of six points for the second of these 
languages. Quebec, on the other hand, 
allocates a maximum of 15 points for 
the knowledge of French, while 
English receives only two points. 

For Hong Kong people who have 
decided to apply for immigration at 
the Quebec office rather than at the 
Canadian Commission (in some cases 
because they have decided that the 
overall requirements are less stringent 
in Quebec), this decision may entail 
learning French in order to improve 
their chances of scoring high in the 
language category. While language 
proficiency may be of little 
consequence in the case of those many 
"business" immigrants from Hong 
Kong who scored high in the point 
system while having little or no 
knowledge of French, the same is not 
true of the many non-business 
immigrants who wish to enter Canada 
through Quebec, where such 
proficiency becomes an important 
issue. In fact, Hong Kong based 
immigration lawyers are advising their 
clients to learn French prior to their 
interviews. 

The desire to emigrate to Canada 
is believed to be at least partly 
responsible for a rapid increase in 
enrolments at Alliance Francaise (AF), 
France's "instrument" for the 
dissemination of French culture abroad. 
The school has seen a marked increase 
in the number of people learning 



French at their Hong Kong offices, 
which together mark the territory as 
AF's third or fourth largest presence 
in the world. The number of such 
students jumped from 7,040 in 1986- 
87 to well over 13 thousand in 1989- 
90, with a particularly strong demand 
for French courses in the last year. 
Mi. Herve Braneyre, of the central AF 
office in Hong Kong, points out that, 
although the school does not poll its 
students as to their reasons for 
enrolling, and although some of the 
increase may be explained by the 
opening of a new centre in the New 
Territories, there is little doubt that 
many students are in fact looking to 
improve their chances of emigrating to 
Quebec (other French-speaking 
countries have not been attracting as 
many Hong Kong people because of 
their more restrictive immigration 
policies, said Braneyre). 

Already plagued by a declining 
birth rate and a smaller share of 
immigrants (16%) than its 
demographic weight in Canada (25%), 
Quebec also faces the problem of 
ensuring that the newly arrived 
immigrants will decide to remain in 
the province rather than leave for 
anglophone communities in other parts 
of Canada. Though there are no formal 
statistics, many Hong Kong immigrants 
who have obtained a CSQ (Certificat 
de Selection du Quebec) leave the 
province soon after their arrival, often 
moving to Toronto or Vancouver. In 
order to solve this problem and allay 
dissatisfaction from its French 
speaking community about the lack of 
integration by some ethnic groups, 
Quebec is now trying to promote 
immigration from French-speaking 
countries which are culturally most 
similar to it, such as France and 
Belgium. In the case of Hong Kong, it 
has come up with a solution which it 
hopes may in the long run prove 
beneficial. On August 29, Monique 
Gagnon-Tremblay, Quebec's Ministre 
des Communautes Culturelles et de 
l'lmmigration, signed an agreement 
with Alliance Francaise establishing a 
two semester pilot project in which 
50-60 people now holding a CSQ will 
take French language courses given by 
teachers from Quebec (or French 
teachers who are familiar with the 
province), using Quebec leaching 



materials. With Monlmartrc giving way 
to la rue Saint-Denis in the textbooks, 
the hope is that early identification 
with Quebecois culture will facilitate 
the integration of immigrants following 
their arrival in the province. It is also 
possible that the program may be 
expanded later to allow prospective 
applicants (those without a CSQ) to 
take the classes. 

Report From China's Capital 



by Mark Rowswell 
Beijing 



V 



Chinese press coverage of Hong 
Kong over the past few months can be 
easily divided under three headings: 
positive economic reports, criticism of 
London's nationality package (the 
British Nationality [Hong Kong] Act 
1990) and calls for unity and 
cooperation between Hong Kong and 
the mainland. All the coverage gives 
the reader the impression that 
everything is fine and would be even 
better if the British stopped meddling 
and Hong Kongers quit squabbling. 

The positive economic reports 
come in the form of short summaries 
of selectively chosen statistics. 
Glowing coverage was given to the 
official opening of the 70-storey Bank 
of China (BOC) building in May, an 
occasion attended by the president of 
the state-owned bank, Wang Deyan. 
BOC loans to local Hong Kong 
industries were said to have increased 
by 17 percent, but no time frame was 
specified. Headlines such as "HK sees 
increase in foreign firms," and "More 
ships arrive in Hong Kong" appeared 
in the week before the British 
parliament passed the nationality 
package. 

This move by London, which 
grants full British citizenship, including 
right of abode in the United Kingdom, 
to 50,000 heads of families and their 
dependents, has been repeatedly 
criticized in the Chinese press. A new 
round of condemnation followed the 
British Parliament's final passing of 
the proposals in July. The Chinese 
claim that the nationality package is a 
clear violation of the spirit of the 
Sino-British Joint Declaration and 
other relevant agreements. Beijing has 

BEIJING - page 11 



UPDATE 9 



Return Migration to Hong Kong 



by Josephine Smart 
Calgary 

Emigration is nothing new for 
Hong Kong, but the recent wave of 
1997-related departures of skilled and 
professional, middle-class Chinese to 
Canada, Australia and the United 
States has caused much concern and 
debate. An estimated 95 thousand 
people left in the period 1986 to 1988 
[scmp, 20-H-1988]. In 1989 alone, over 
42 thousand people left Hong Kong. 
The Hong Kong government estimates 
a net out migration of 425,664 persons 
for the period 1989-1996 [scmp, 8-os- 
1990]. Some multinational companies 
are concerned enough about the 
instability generated by the steady loss 
of qualified personnel to consider 
moving their headquarters to Thailand 

[Hong Kong Business Today, March 1988; 17-18]. 

Local residents, many enjoying 
unprecedented wage increases and 
promotional opportunities due to the 
increasing labour demand, also express 
concern about the economic and social 
stability of Hong Kong as a result of 
the "brain drain". The government, 
naturally, tries to downplay the 
negative impact of brain drain [scmp, 
17-03-1989). However, even the 
government admits that foreign 
investors are shying away from Hong 
Kong because of the brain drain 

[Hong Kong Standard 6-19-1989]. 

It is not surprising that both the 
public and private sectors in Hong 
Kong share a common interest in 
return migration of Hong Kong 
emigrants. More pointedly, they are 
interested in finding ways to encourage 
and facilitate return migration. The 
Institute of Personnel Management, 
representing 665 major firms in Hong 
Kong, has just launched a plan code 
named Net Project to reverse the brain 
drain via active recruitment of Hong 
Kong immigrants in North America 
and Australia [scmp. 15-05-1990]. 
Similarly, the Hong Kong government 
is considering sending senior officials 
overseas to lure Hong Kong emigrants 
and university students back to the 
territory [scmp, i2-io-i989]. Many 
multinational companies have been 
doing that for some time with mixed 
results. Last year. Price Waterhouse 
advertised in Toronto for positions in 
Hong Kong and received 800 



responses, of which 120 were 
interviewed for positions as 
accountants, engineers, marketing and 
financial consultants. In contrast, 
Louis Thomas of Odgers and 
Company received only 67 responses 
from his English and Chinese 
advertisements in Vancouver last 
October seeking Hong Kong 
professionals who wished to return 

[SCMP, 12-10-1989]. 

Nobody knows exactly how many 
emigrants return to Hong Kong to live 
and work despite repeated attempts by 
the government and other non- 
government bodies, like the Institute of 
Personnel Management, to pin-point 
the phenomenon through surveys. In a 
recent government survey of 60 
thousand people, the result was 
considered invalid due to the people's 
unwillingness to respond truthfully to a 
survey on the subject after the June 
massacre in Beijing in 1989 [scmp, 21- 
05-1990]. In an earlier survey in 1989, 
a government task force found that 
there were about 41 thousand Hong 
Kong people holding foreign passports 
who had returned to the territory 
[scmp, 9-09-1989]. The Canadian 
Commission estimated there are about 
26 to 29 thousand Canadian passport 
holders of Hong Kong origin living in 
Hong Kong in 1990 [scmp. 22-04-1990]. 
It is not clear from these figures 
whether the people included are recent 
emigrants or whether they left Hong 
Kong more than a decade ago and 
whether their stay in Hong Kong is 
temporary or permanent. There is a 
general optimism about return 
migration based on the belief that once 
they secure their foreign passport and 
citizenship, emigrants will be attracted 
to the greater economic opportunities 
in Hong Kong. At present, the return 
rate of recent Hong Kong emigrants is 
estimated at 10-15 percent [scmp, 22-04 
1990]. It is expected that the rate of 
return will increase from 1991 under 
the influence of more active overseas 
recruitment campaigns and the ongoing 
strength of the Hong Kong economy. 

The optimism about return 
migration, however, is not shared by 
all. The recruitment of Hong Kong 
emigrants holding foreign passports to 
alleviate the labour shortage in Hong 
Kong is at the best a band-aid 



solution. Many, if not all, of the 
returnees will leave again in or before 
1997 when The People's Republic of 
China takes over Hong Kong [Ming Pao, 
9-01-1990]. In a recent survey by the 
City Polytechnic of Hong Kong, about 
50 percent of returned emigrants 
indicated they would leave before 
1997 [scmp. 6-01-1990]. More 
importantly, the assumption that 
economic incentives are the primary 
driving force behind return migration 
is both simplistic and misleading. It 
cannot be denied that economic factors 
are major issues for some returnees. 
A survey by The Survey Research 
HongKong in 1990 revealed that 
almost half of those coming back to 
Hong Kong did so because they could 
earn more or find better jobs in the 
territory, a third cited nostalgia and 
other social reasons as the reason for 
coming back, and a fifth came back 
because they had trouble adapting to 
life overseas (scmp, 12-07-1990]. The 
significant number of "astronauts" with 
or without a foreign passport living 
and working in Hong Kong while their 
family lives overseas is a strong 
indication that good jobs and high 
wages are strong attractions indeed for 
some. However, money alone is 
unlikely to increase the return rate 
significantly. There are several major 
factors contributing to many emigrants' 
lack of interest in return migration. 

First, it may not be economically 
viable to return to Hong Kong after 
living overseas for several years to 
qualify for citizenship and a new 
passport. Even with a job guarantee, 
the new job in Hong Kong may not 
pay sufficiently to cover the cost of 
relocation. Housing is extremely 
expensive in Hong Kong, it can cost 
up to Cdn$l million to duplicate an 
average Canadian family's living space 
and style in Hong Kong. The children 
will not be able to follow the more 
rigorous curriculum and higher demand 
of Chinese language skills in the 
public schools. The only alternative is 
the international schools which offer 
North American, British and, in future, 
Canadian curricula. There are 17 
international schools at the secondary 
level and 28 at the primary and pre- 
school level. Altogether they offer 
about 10 thousand places at a cost of 
Cdn$3-$10 thousand a year which 



10 UPDATE 



increases by 15-20 percent every year 

|SCMP, 1303-1989; 18-06-1990; 29-06-1990) .A 

Some schools have a waiting list of 
several years iscmp, 04-03-19901. For a 
returnee, a move back to Hong Kong 
is simply not viable economically if 
his income cannot cover these and 
other costs. Some companies 
obviously will pay a candidate that 
they really need and want, but other 
companies are expressing concern 
about the divisive effect of offering 
returnees a better package than that 
offered to their local staff [scmp, n-03- 
1989]. Such differential treatment is 
likely to cause internal unrest and loss 
of staff loyalty. 

Secondly, many social and non- 
economic factors arising from an 
emigrant's experience of living in 
another country can affect his/her 
decision about return migration. Some 
Hong Kong emigrants left initially 
with the intention of returning after 
they obtained their foreign passport, 
and their experience of downward 
mobility and loss of status/rank and 
income in the new host country might 
very well intensify this desire for 
return migration in their first year 
away from Hong Kong. However, as 
time goes on, they experience a way 
of life that they enjoy like nothing 
they ever had in Hong Kong. They 
have more time to spend with their 
family, they have more space to 
themselves, their children enjoy school 
and the parents no longer have to 
spend all evenings and holidays 
supervising and preparing the children 
for the never ending examinations. 
They can slow down and take 
holidays, they no longer have to drive 
like Mad Max or to get all stressed 
out on the road to avoid aggressive 



drivers as they did in Hong Kong. 
They can be more casual in their dress 
and lifestyle since there is not the 
same pressure on consumption and 
keeping up with the Joneses. In short, 
they become more human. They are 
happier. Many still miss the 
excitement and material extravagance 
of Hong Kong, but at the same time 
they are not willing to give up their 
better quality of life in return for more 
money, more stress, more pollution 
and more work. One senior 
telecommunications executive from 
Hong Kong earning a yearly income 
of close to Cdn$100 thousand before 
he left last month sums it up this way, 
"I have had enough of it. I sold my 
body and soul to the company for 
almost twenty years. Now I want to 
live." For people like that, no amount 
of money will lure him back to Hong 
Kong before or after 1997. 

Lastly, most professionals and 
middle-class Chinese leave Hong Kong 
because they fear the uncertainty of 
1997. They give up their career, 
income and status in order to resettle 
their family in a place they can call 
home permanently. The relative lack 
of interest in Singapore, Taiwan and a 
myriad of smaller and unstable 
countries as a final destination for 
Hong Kong emigrants, reflects clearly 
this sentiment Return migration, for 
these emigrants, means a transitional 
phenomenon that will be modified or 
reversed once the conditions change. 
Older folks may return to live in Hong 
Kong for social and cultural reasons, 
but they will move back to North 
America or Australia if political and 
social stability in Hong Kong should 
worsen. "Astronaut" husbands and 
wives will continue their divided 



existence between Hong Kong and 
another country for as long as the 
economic incentives are strong, and 
the social pressure to rejoin the family 
remains low. In view of the 
increasing awareness of the 
psychological and social problems 
associated with the astronaut 
phenomenon, maybe more Hong Kong 
emigrants would decide not to become 
"astronauts" in order to reduce the 
possibility of divorce, generational 
hostility and mental stress associated 
with single-parenthood and migration 

[Hong Kong Standard, 28-04-1990; Lam, 1990; 

Smart, in press]. Most return emigrants 
intend to take their family out of 
Hong Kong before 1997 to ensure 
their safety. If conditions remain good 
in Hong Kong after 1997 they may go 
back, but clearly they do not intend to 
put their families at risk for the sake 
of money or position. It must be 
made clear to the policy makers and 
other significant players in Hong Kong 
that return migration before or after 
1997 is a volatile phenomenon 
governed only partially by economic 
forces. There are the many social and 
individualistic factors that no amount 
of money or material attraction can 
displace to increase the rate of return 
migration or to keep the returnees in 
Hong Kong for any longer than they 
wish. 

References: Hong Kong Business Today, Hong 
Kong Standard; Lawrence Lam, The New 
Chinese Immigrants in Toronto: The Hidden 
Injury of Their Migration, Paper presented at the 
Learned Societies Meetings, University of 
Victoria, May 1990, Josephine Smart. 
Immigration and Household Formation: The 
Emergence of Female-centred Households 
Among Hong Kong Business Immigrants in 
Canada, International Migration Review, South 
China Morning Post [SCMP). 



Report from Beijing 



from page 9 

declared that it will not recognise the 
British citizenships granted to "a 
number of Hong Kong Chinese 
citizens" and vowed that "the 
government of the Hong Kong Special 
Administrative Region will be 
composed of local inhabitants." This 
latest round of criticism was merely a 
repetition of previous statements by 
China. 

The remainder of news articles on 
Hong Kong consist of calls for 
stability and a sense of unity and 
cooperation among Chinese from the 



mainland and Hong Kong. This was 
the thrust of CCP General Secretary 
Jiang Zemin's message to prominent 
Hong Kong figures such as Li Ka 
Shing when they met in Shenzhen in 
June. Also in June, director of the 
Hong Kong branch of the Xinhua 
News Agency, Zhou Nan, urged Hong 
Kong businessmen to learn how to live 
in harmony and cooperate under the 
"one country, two systems" 
arrangement. These calls reflect 
Beijing's desire to avoid the 
internationalization of the Hong Kong 



question and instead treat it as an 
internal Chinese affair. 

Chinese press coverage of Hong 
Kong has been very sparse, especially 
in comparison with news related to 
Taiwan. Beijing apparently believes 
that the Hong Kong question has been 
settled and any difficulties arising 
during the transition of power to the 
mainland can and must be solved by 
the Chinese government, without 
interference from international or 
dissident Hong Kong forces. 



UPDATE 11 



Hong Kong in Canada-China Trade 



by Philip Calvert 
Ottawa 



• 



Hong Kong was born out of Sino- 
British hostilities over access to the 
China market, and its proximity to 
China has dominated its life ever 
since. Created by the treaty which 
ended the first Opium War in 1842, 
Hong Kong has served as a listening 
post for the gathering of intelligence 
on mainland China, as a goal for 
refugees from the mainland, and as a 
centre for the study of Chinese 
politics, history and culture. The 
impact of its proximity has also 
dominated its economic life. Although 
Hong Kong in its own right serves as 
an important market for Canadian 
goods and services, the territory has 
also become increasingly important for 
the access it provides to China and the 
Chinese market. Hong Kong based 
trading companies are playing 
important intermediary roles in the 
expansion and maturing of trade 
relations, and with the increasing 
economic presence of China in Hong 
Kong and the growing fusion and 
interdependence of the two economies, 
this role is likely to become even 
more important in the future. 

Re-exports dominate Hong Kong's 
export trade. According to figures 
provided by the Hong Kong Trade 
Development Council, the territory's 
1989 re-exports were worth about 
US$44 billion, as compared with 
US$29 billion worth of domestic 
exports. Figures for the first six 
months of 1990 indicate a 
continuation, even a strengthening of 
this trend: the value of re-exports 
(US$23.5 billion) was nearly double 
that of domestic exports (US$12.9 
billion). The bulk of the re-export 
trade comes from factories in 
Guangdong (Canton Province), China, 
where assembling and processing is 
carried out for foreign (mainly Hong 
Kong) companies. These re-exports of 
Chinese origin continue to increase, 



despite a drop this year in Hong 
Kong's overall re-export trade. Re- 
exports also play an important role in 
Canada's trade with Hong Kong and 
China. Currently, Canada exports 
about $1.1 billion (Canadian) to Hong 
Kong, about 25 percent (or $275 
million) of which is re-exported; of 
this, about 80 percent (or $220 
million) goes to the People's Republic 
of China. 

Figures on the value of exports 
passing through Hong Kong trading 
houses, however, only tell part of the 
story, for Hong Kong's importance in 
Sino-Canadian trade takes on many 
more dimensions. Many Canadian 
companies and organisations, including 
some provincial governments, have 
offices in Hong Kong which serve as 
a base for their Asian activities, 
allowing for more regular, frequent 
contact with Asian markets — 
including China - and promoting the 
development of ongoing personal 
associations which are so important to 
the conduct of business in this region. 
Other companies make use of Hong 
Kong agents for the promotion of their 
activities in China. A good agent can 
provide an understanding of the 
language and cultural traditions of the 
market: proximity to the mainland, 
careful cultivation of contacts within 
the Chinese bureaucracy, and the 
judicious use of ties of ethnicity and 
locality can give them access to 
essential technical or commercial 
intelligence, while knowledge of the 
structure of, and key players within, 
the Chinese bureaucracy can allow 
them to cut through the red tape 
associated with transactions in China. 
Of course, any company wishing to 
have its own effective Hong Kong 
office will be aware of these 
considerations when hiring its own 
staff as well. 

The use of Hong Kong offices or 
Hong Kong-based trading companies 
and agents (some of which have 
offices in Canada) continues to play 



an important role within the 
framework of Canadian trade with 
China. Wheat, of course, dominates 
our exports to China: this is managed 
through negotiations between the 
Canadian Wheat Board and central 
agencies in China, and shipped mainly 
through northern ports such as Dalian 
and Tianjin. However, a significant 
part of the growth of trade in other 
sectors comes from activities generated 
or managed through Hong Kong. This 
trade tends to focus on South China, 
where ties of language and personal 
connections are stronger. 

The growth of Hong Kong export 
industries based in Guangdong and 
China's Special Economic Zones 
(SEZ's), however, also reflects the 
growing interdependence of the 
economies of China (particularly South 
China) and Hong Kong. Hong Kong 
companies are major investors in the 
mainland, and the most powerful Hong 
Kong entrepreneurs have access to 
China's top leadership. In the past 
few years, Chinese government 
corporations, particularly China 
International Trust and Investment 
Corporation (OTIC), have been 
investing heavily in the Hong Kong 
economy, especially in the energy and 
transportation sectors. CITIC now has 
shares in Cathay Pacific, Dragon Air 
and Hong Kong Telecom, and is 
pursuing interests in China Light and 
Power. It is significant, too, that 
when the United States was 
considering not renewing China's Most 
Favoured Nation Status, the Hong 
Kong government and business leaders 
strongly urged that the status be 
renewed, arguing that cancellation of 
this status would have devastating 
effects on the Hong Kong economy. 
As we approach 1997, we can expect 
the two economies to become even 
more interlocked, and Hong Kong's 
importance as an entrepot to become 
more crucial in trade relations with the 
People's Republic of China. 



Workshop on Project's Future / 

On June 1, 1990, the Asia Pacific 
Foundation in Vancouver hosted the 
first workshop of the Canada and 
Hong Kong Project since it began 
operations in January of this year. 
Key participants from Toronto, 
Vancouver, and Victoria gathered to 
help define the issues to be addressed 



over the course of the four year 
project. The day was divided into 
four sessions: an Introduction, Hong 
Kong Issues, Settlement Issues and 
International Issues. 

During the morning sessions. 
Professor Diana Lary, Director of the 
Project, led informal discussions on 
the project's objectives and issues to 
be addressed in research, workshops, 
conferences, newsjournals and 



publications. The issues include how 
new immigrants from Hong Kong are 
perceived by Canadians including the 
Chinese community and how they are 
portrayed in media reports. Professor 
Lary said the project is to be a sober 
counter-balance to any existing or 
potentially negative atmosphere 
anywhere in Canada in response to the 
large-scale immigration of people from 
Hong Kong. 

WORKSHOP - page 16 



12 UPDATE 



Immigration Brings New Challenges for B.C. Schools y* 



by Stephanie Gould 
Toronto 



Like many others in Canada's 
urban areas, school districts in British 
Columbia, especially in Richmond, 
Surrey and Burnaby, are facing the 
challenge of rapidly increasing 
enrolments of children recently arrived 
from Hong Kong. 

For the second year in a row. 
School District #38 in Richmond, is 
not accepting fee-paying international 
students this year because English as a 
Second Language (ESL) Programs are 
bursting at the seams. Mr. Rubin 
Chan, Director of Special Programs, 
reports that from 1982-1986, the 
school district had 180-190 students 
enroled in ESL classes; in 1987, 220; 
in 1988, 400; in 1989, 950; in 
September of this year there are 2100 
ESL students. "Last year, every 
month, 50-70 new kids needed ESL. 
This gives you an idea of the 
magnitude and speed of change. 
Ninety percent of these are from Hong 
Kong and Taiwan," said Chan. 

Last year, the school district 
subsidized the program by over a 
million dollars. Funding from the 
Ministry of Education in B.C. is based 
on a head count on the 30th of 
September every year. "They kept 
coming, every month we'd get 50-70 
[students], so for those that arrived 
after September 30th, we did not get 
funding," said Chan. "We have made 
submissions to our local MLA and to 
our MPs and they said they would 
look into it and try to come up with a 



funding formula that is more 
equitable." Despite lack of funding, the 
school board has taken a "pro-active" 
approach to meet the challenges of a 
rapid influx of new students. "Now, 
this is an evolution rather than a 
revolution because we have some 
inkling about the fact that there will 
be more and more coming, not 
knowing the magnitude of the whole 
thing," said Chan. Programs have 
been designed and implemented for 
teachers, students and parents. 

Much has been accomplished by an 
ESL Teacher Consultant, "who 
organized our teachers and 
administrators to raise their awareness, 
acceptance and their understanding of 
the students' needs." At monthly 
meetings, coordinators of ESL 
programs "compare notes and share 
ideas so we can help each other meet 
the challenge of the newly arrived 
ESL students, said Chan. 

The board has worked closely with 
community organizations and the 
teacher's association to organize 
professional workshops and seminars. 
Members of community groups 
working with Indo-Chinese and Indo- 
Canadians have been brought in to 
speak and meet with teachers. Last 
year, the theme of the annual teachers' 
association convention was 
multiculturalism and English as a 
Second Language. 

They are also working with local 
universities to offer credit courses for 
teachers. University professors are 
teaching credit courses in 
multiculturalism, teaching ESL and 



teaching ESL students in regular 
classrooms. Chan said the courses, 
which are offered in Richmond to save 
teachers travelling to university, are 
oversubscribed. 

A program for students called 
English as a Second Culture was 
designed to provide orientations about 
Canada and Richmond "as cultural 
communities." A buddy system has 
also been started in the schools. "We 
call them friendship clubs where you 
have the kids make friends and work 
together. And that's to avoid any 
possible racial tensions." 

Chan is also pleased with the 
reception of the first orientations and 
workshops for parents last October. 
"We have set up parents' nights to 
provide orientations about the 
community, about what the education 
system can offer, the health 
department and support services in the 
community. Last year, over 200 
parents came to the meeting. That 
was followed by a one day workshop 
on parenting called 'Bringing Up 
Children in the Land of Your Choice' 
and about 100 people showed up for 
that day." 

Chan admits that there are still 
many problems to be overcome, but he 
prefers to see them as challenges and 
opportunities. "A lot of people see 
the immigration as a problem. You 
know, of course it has presented us 
with many challenges, like funding, 
staffing and whatnot. But it has also 
offered us many opportunities to 
cultivate acceptance, understanding and 
multiculturalism." 



Expo Site Still an Issue 



by Tan Xiaobing 
Vancouver 



sy 



In April 1988, the site of Expo '86 
sold to a consortium headed by Hong 
Kong billionaire Li Ka-shing. The site 
is about 96 hectares, or one sixth of 
the downtown area, by some estimates. 
The sale to off-shore interests aroused 
public concern and controversy among 
politicians because the property is seen 
by some as "the jewel in the city's 
crown". 

Not long after, Grace McCarthy, 
then B.C. Minister of Economic 
Development, resigned. Four months 
later, the B.C. Enterprise Corporation 
(BCEC) board, which engineered the 
sale, was fired. Premier Vander Zalm 



advocated the sale, then, after it was 
signed, called for it to be renegotiated. 
Later, he again supported the sale as it 
had originally been negotiated. 

The concern and controversy 
remain strong. On April 28, two 
years after the land was sold, the 
Vancouver Sun published reports to 
provide the public with more 
information on the central questions: 
how much money the government got 
from the sale, and why the land was 
sold to the Hong Kong company. 

According to reports, the B.C. 
government will get between $125 
million and $320 million, depending 
on how it is calculated. Li Ka-shing's 
Concord Pacific Developments Ltd. 
will have paid a total of $320 million 
by the year 2003. Once interest is 



deducted, the company will have paid 
$125 million. 

Grace McCarthy says the land was 
sold for the "market value" determined 
by an open-bidding process. But there 
were only two potential buyers, Li's 
Concord Pacific and the Vancouver 
Land Corp., a consortium headed by 
Vancouver developer Jack Poole. 
Only Li's company proposal met the 
B.C. cabinet's objective of privatizing 
the lands quickly. Poole's bid 
included a 25-percent participation by 
the province. A third potential bidder, 
Toronto-based Bramalea Ltd., asked 
for more time to submit a proposal but 
was turned down by BCEC, under 
pressure from the premier to proceed. 
Li's company paid about $1.3 million 
a hectare. The B.C. government must 

EXPO - page 15 



UPDATE 13 



Sky Lee: Embracing the Past with Love and Anger ^ 



by Stephanie Gould 
Toronto 

"Documents and facts are intended to direct 
our prejudiced hearts but rarely provide direction 
by themselves. I have boxes and boxes of 
documents but what I need is vision and vision 
comes from relationship. Facts bereft of love 
direct us nowhere." 

Joy Kogawa in Magdalene Redekop, 

"The Literary Politics of the Victim," 

Canadian Forum . November 1989. 

Sky Lee's recent novel, 
Disappearing Moon Cafe , like Joy 
Kogawa's Obasan , is based on 
historical documents and facts. Like 
Kogawa's, Lee's "vision comes from 
relationship"; history and fact are 
transformed into fiction by intense 
feeling, if not love. In her first novel, 
which Lee describes as a "protest 
novel," the characters, plots and 
themes are animated by protest and 
anger. Lee's voice of protest is "a 
Chinese voice that has been silenced 
for many, many decades here in 
Canada," she said. It has taken several 
generations for Chinese Canadians to 
regain the cultural voice which they 
lost in the "process of being displaced 
from China to Canada." Lee 
researched and wrote Disappearing 
Moon Cafe over a fifteen year period 



while she worked as a nurse and a 
single parent to her six year old son. 
The novel is not autobiographical, but 
her themes are strongly influenced by 
her own experience as a woman and a 
Chinese Canadian. One of five 
children born into a Chinese Canadian 
family who lived in Port Alberni, a 
small mill town in British Columbia, 
Lee experienced poverty and isolation 
as a child. Her mother, who was bom 
in Burma, was barred from coming to 
Canada by the Chinese Exclusion Act 
of 1923 which was not repealed until 
1947. Her father was bom in Canada, 
but in keeping with tradition, he 
returned to China to "take a wife." 
Many things have changed since 
her family came to Canada, but Lee 
said Chinese Canadians experience as 
much prejudice and stereotyping as 
ever. Her novel will have special 
significance for people leaving behind 
a whole way of life to come to 
Canada -- especially people who share 
her own cultural roots, such as those 
moving from Hong Kong, said Lee. "I 
think the human response to 
displacement, alienation, isolation are 
the same experience [as they were 
early in this century]. And the nice 
thing about Disappearing Moon is that 
those things are not at all diminished. 



On the other hand, they are not 
portrayed as something that is crushing 
emotionally. Given a certain 
intactness of being people will not 
only survive but thrive." 

For Lee, the book is a celebration 
of her cultural roots. She believes 
Chinese Canadians have always been, 
not "ethnic," but part of the 
"mainstream". The novel traces the 
history of the Wong family over five 
generations, beginning with Wong 
Gwei Chang, who fell in love with a 
native woman in the wilds of British 
Columbia where he hunted for the 
bones of deceased railway workers. 

"There's a way in which I just 
assume that we are very mainstream, 
very much present. And I've never 
really had to defend that in the book. 
That's the wonderful part. In the 
book you'll find that there are 
recorded incidences of racism over and 
over again. But they seem to be very 
much on the outside. And the 
personal drama that's happening within 
the community, within the generations 
of women in the Wong family, were 
very much the centre stage. And they 
had no other sense of themselves 
except as that." 

LEE - next page 



Democracy Month in Toronto 

by Yang He 



Toronto 



V 



Overseas Chinese in Toronto used 
to be regarded as hardworking citizens 
who concentrate their lives on business 
and aren't particularly interested in 
politics. But this image has changed 
dramatically since the June 4th event 
in Tiananmen Square in 1989. Like 
overseas Chinese around the world, the 
Chinese community in Toronto has 
been mobilized and united by the 
student-led democratic movement in 
Beijing. During May and June, 1989, 
many community and student 
organizations, including the Toronto 
Association for Democracy in China, 
the Federation for a Democratic China 
(Toronto chapter), the Chinese Alliance 
for Democracy (Toronto), the 
Federation of Chinese Students & 
Scholars in Canada, Design for 



Democracy and the University of 
Toronto Students Concerned About 
Student Movement in China were 
established. These groups play a 
leading role in organizing activities to 
support the student movement in 
Beijing. 

To commemorate the anniversary 
of June 4th, the Toronto Association 
for Democracy in China and Design 
for Democracy launched a joint 
project, Democracy Month, from May 
4 to June 4, 1990 in Toronto. 
Democracy Month began with an 
opening ceremony in the Peace Garden 
at Toronto City Hall on May 4th. 
Four days after the opening ceremony, 
a concert for democracy in China, 
performed by ten top singers from 
Hong Kong, Taiwan and Canada, was 
held on May 9th at Maple Leaf 
Gardens. The concert was sponsored 
by Sing Tao Newspapers, Am-Can 
Sino Broadcasting Toronto Ltd., 
Channel Forty Seven Cable Four 
Television and Essex Park Hotel. 
Twelve thousand fans and more than 



300 volunteer workers joined the 
singers at Maple Leaf Gardens. The 
concert received wide media coverage 
and raised more than $60 thousand. 
The second climax of the month 
was the "Democracy in Motion" rally 
and march on Sunday, June 3rd. Over 
seven thousand people from all walks 
of life gathered at Nathan Philip 
Square in front of City Hall that 
afternoon. The crowd was singing 
"Elegance Stained With Blood" and 
"We Shall Overcome". One after 
another, speakers commemorated those 
who devoted their lives to democracy 
in China and called for solidarity to 
continue the struggle. Among them 
was Premier Bob Rae, then leader of 
the New Democratic Party in Ontario, 
representatives from Toronto women's 
organizations and members of the 
former independent Worker's Union in 
Beijing. Both the federal and the 
Ontario governments sent endorsements 
to the rally. Afterwards, people 
marched from Nathan Philips Square 

DEMOCRACY - next page 



14 UPDATE 



Sky Lee 

Lee interweaves historical truths and 
fictional dramas to create the sense of 
a community rife with intrigue in 
which women must think up strategies 
to survive. Lee's contribution to 
Canadian literature and to the 
understanding of Canadian history is 
peppered with protest against the 
misogyny not just of Chinese culture 
but all cultures. She has written an 
historical novel that traces the lives of 
Chinese Canadian women in 
Chinatown. Lee's contribution fills a 
void in a country where very little has 
been written about either the Oriental 
women of B.C. or Canadian 
Chinatowns (see Margaret Conrad, 
"'Sundays Always Make Me Think of 
Home,' Time and Place in Canadian 
Women's History," in Rethinking 



Canada: The Promise of Women's 
History , Toronto, 1986). As the title 
suggests (the name of a restaurant in 
Saskatchewan was the inspiration for 
the title), Lee is also protesting the 
disappearance of a way of life which 
she believes is being obliterated by 
white Canadians. 

"One of the most compelling 
elements in this book, I find, is that it 
portrays Chinatown to be small town 
Canada, which is exactly what 
Chinatown is — in this case Chinatown 
Vancouver. But there have been 
many, many Chinatowns in many 
small centres all over B.C. at one 
point or another in history, in 
Cumberland, Nanaimo, Courtney, even 
Port Albemi," said Lee. "And I 
suppose because Chinese were such an 
unwanted element by white Canadian 



standards, the powers that be worked 
on getting rid of them as soon as they 
could." 

As a feminist and a Chinese 
Canadian who took part in protests 
against urban renewal (a phase in 
Vancouver's Chinatown history), Lee 
has a strong message for people 
settling in a country dominated by 
white Canadians of European origin 
who she believes are responsible for 
the disappearance of cultures all over 
the world. "It is very important for 
them to maintain their own sense of 
being and their own love of 
themselves," she said. But as a writer, 
Lee has another message for 
Canadians, and especially for scholars: 
"I'd like to warn them and say watch 
out for the passion, anger and 
intensity." 



Democracy Month 

from previous page 

to the consulate of the People's 
Republic of China. The seven 
thousand protestors stretched over a 
mile long and people constantly joined 
the march from the streets. The 
commemorative rally and march took 
more than three and a half hours. 
Like the concert for democracy in 
China, it was also reported by all 
major press in Canada. 

In addition to the two major 
activities, a number of art exhibitions 
and speeches were organized by the 
Toronto Association for Democracy in 
China and the Federation of Chinese 
Students and Scholars in Canada 
during Democracy Month 1990. On 
May 13, a children's drawing contest 
called "Democracy Through the Eyes 
of a Child" was organized at Nathan 
Philip Square. On May 19, an art 
exhibition, "Democracy in 



Perspective," was opened at the 
Ontario College of Art and later 
moved to the City Hall rotunda. 
Through their works, many well- 
respected artists, designers and art 
educators from Canada and the U.S. 
expressed their perspectives on 
democracy. Another exhibition tour, 
"1989," organized by the Edmonton 
Federation for Democracy had a show 
in Toronto during May 19 to 21. 

On May 13th, Mr. Liu Binyan, a 
famous investigative writer who was 
expelled by the Chinese Communist 
party in 1987, was invited by the 
Federation of Chinese Students & 
Scholars in Canada to give a speech at 
the University of Toronto. An 
enthusiastic audience of over 500 
packed the Medical Sciences 
Auditorium to listen to Mr. Liu's 
speech. On May 20, again invited by 
the Federation of Chinese Students & 
Scholars in Canada, Mr. Wan Runnan, 
secretary of the Federation for a 
Democratic China based in Paris and 



the Chinese government's top fugitive, 
gave a speech at the University of 
Toronto. Mr. Wan's speech was 
considered one of the most informative 
and clear-minded analyses of the 
democratic movement in China. On 
both occasions, audience members 
donated funds for a Toronto based 
newspaper - Press Freedom Herald, 
Canadian Edition. Over $1 thousand 
was raised for the newspaper. 

The 1990 Democracy Month in 
Toronto was a remarkable success. 
The concert, the march, the arts and 
the speeches touched every 
participant's heart and will constantly 
remind people what happened at 
Tiananmen Square on June 4, 1989. 
As Dick Chan, chairman of the 
Toronto Association for Democracy in 
China, put it: "As long as we do not 
forget, the children of China will soon 
see a new country where they will be 
able to determine their own destiny 
democratically and where human rights 
are truly valued." 



Expo Site 

from page 13 



\ 



clean up toxic waste on the land and 
in the water. 

While the bidding process seemed 
to favor Li's company, things after the 
sale were not so smooth. The 
company originally planned to have 
construction under way by December 
1989. But, the rezoning proposal was 
not passed until June 1990. Public 
hearings were held and proposals were 
changed again and again. One factor 
in the delay was the deletion of 
islands and lagoons from the plan - 



the city planning department was 
concerned about public accessibility to 
the False Creek waterfront The cost 
of the delay was substantial, up to $25 
million, according to a former BCEC 
official. However, the land itself 
gained value during the 1989/90 real 
estate boom. In April, it was estimated 
to be worth between $310 million and 
$1 billion. 

On June 14, Vancouver City 
council approved a CD-I rezoning 
application for developing the land, a 
site-specific bylaw tailor-made to the 
intended form of development. Under 
the agreement, the developers will 



provide a maximum of 720 dwellings 
in buildings no taller than 285 feet. 
They must also supply 25 percent 
family housing over the entire site, 
and 144 units of social housing. 

After the plan passed, Concord 
Pacific acted quickly. On July 9, 802 
days after sale, the company declared 
an official start of its development. 
The first phase included a ten-acre 
public park between Quebec, Keefer 
Streets and Pacific Boulevard. The 
Vice-President of Concord Pacific said 
that the project would cost about $2 
billion and create more than 28 
thousand jobs a year in Vancouver. 



UPDATE 15 



What the Ads Say 

by Chow Ying Wong 
Toronto 

Since large numbers of people 
from Hong Kong decided to make 
Canada their home, a new market has 
opened up for services designed to 
make their lives easier. The 
advertisement of a product or service 
can be seen as an entrepreneur or 
service provider's attempt to cater to 
the needs of prospective customers. 
The attempt is, of course, based on a 
set of assumptions or perceptions on 
the part of the seller. Advertisements 
published in the Sing Tao Daily 
Newspaper between April and August 
1990 reflect the perceived needs of 
this immigrant community. 

Out of an average of 88.4 pages 
published daily by Sing Tao during 
this period, 80 percent or 72.5 pages 
were filled with ads. About one third 
(34 percent) of these ads were related 
to the buying and selling of property, 
the majority of which being 
residential. Another 2.5 percent of the 
ads dealt with mortgage arrangements 
and options available, and another 
seven percent associated with home 
renovation services. More than seven 
percent of the advertisements were 
selling cars or offering different 
packages of driving lessons. Another 
seven percent offered attractive 
travelling packages. About three 
percent advertised for legal, accounting 
and other professional or para- 



professional services. Almost ten 
percent were related to ethnic food, 
eateries and entertainment. It should 
be noted that employment-related ads 
only accounted for 1.4 percent of the 
commercial coverage. 

On closer inspection, many of the 
advertisements published during this 
period, offer services designed 
specifically for newcomers from Hong 
Kong, particularly those who conform 
to the "typical" image of wealthy 
immigrants. For instance, one of the 
ads by a bank offered special relief to 
the wives of "astronauts", promising 
that arranging a mortgage will be easy 
despite the absence of the husband. 
Another reminds investors that they 
are legally bound to fulfil their 
immigration agreement and the 
company will guarantee them a safe 
return. Indeed, about 1 percent of the 
ads explicitly offer investment 
opportunities, not only to immigrants, 
but to prospective ones overseas. It is 
not unusual to find real estate ads 
which emphasize the proximity to 
local "prestigious" schools. Others 
offer to buy properties in Hong Kong 
from immigrants already landed in 
Canada. 

There are, of course, immigration 
consultants, traffic ticket/accident 
consultants and various kinds of para- 
professionals offering services to new 
immigrants. Other services include 
visits to ancestors' graves in Hong 
Kong, complete with a choice of 
religious ceremonies; sending flowers 



to Hong Kong on Mother's day; a call 
to advertise in a bilingual magazine 
which promised access to the "high 
income professionals in Hong Kong 
and Taiwan"; language classes and 
tutoring services for children (very 
popular in Hong Kong). For those 
seeking entertainment, there are tours 
to favorite casinos in Atlantic City and 
competitive rates to Hong Kong 
including accommodation packages. A 
recently popular pastime in Hong 
Kong called karaoke and other high- 
tech features such as laser discs are 
advertised. 

The entrepreneurs behind these ads 
have isolated people from Hong Kong 
into a market, or group, with special 
needs and desires. These ads capitalize 
on the assumption that new immigrants 
from Hong Kong maintain close ties 
to the country of origin, and that they 
are in search of a sense of 
continuation, both culturally and 
socially. Members of a family may 
be landed, but still have elderly 
parents and other extended relatives 
remaining in Hong Kong; the husband 
may need to travel regularly to Hong 
Kong where part of the business 
continues to operate; alternatively, the 
entire extended family has emigrated, 
leaving no one to pay respect to the 
ancestors. ..the services suggested in the 
ads are trying to provide such 
linkages. 

But if people from Hong Kong and 
entrepreneurs could get together and 
talk about real needs and real people, 
I wonder what they'd say? 



Workshop 

from page 12 



V 



The first afternoon session on 
Settlement Issues, chaired by Professor 
Graham Johnson of the University of 
British Columbia, looked at patterns of 
settlement. Professor Johnson said that 
Canada must be looked at as a 
composite of regions with different 
responses to the settlement of people 
from Hong Kong. Issues differ across 
the country and must be approached 
differently by researchers, he said. 
Discussion centred on how to carry 
out quantitative research on the ethnic 
makeup of the Canadian population 
considering the difficulties of gathering 
accurate statistics. Professor Lary said 
the project would like to encourage 
graduate students to consider Hong 
Kong issues and to coordinate with 
other individuals, institutions or 
projects undertaking complementary 
research. 



During the final session of the day, 
chaired by Professor B. Michael Frolic 
of York University, issues such as 
where Hong Kong fits into the 
international scene and how changing 
regional, economic and financial 
patterns will affect Canada-Hong Kong 
relations as 1997 approaches, were 
raised and discussed. Professor Lary 
said that it is important for people in 
the academic community to tackle 
international issues relating to Hong 
Kong's future because of the "policy 
relevance" of this work. 



One sad piece of news - Stephanie Gould, who 
played a major role in designing and setting up 
the project, has moved to Winnipeg, and so has 
had to leave the project. We thank her for all 
her excllent work, and look forward to 
contributions from her for future updates, fanet 
Rubinoff will be joining the project in 
Stephanie's place. 
Piflna Lory 



Hong Kong Conference Report 

Professors Donald McMillen and Daniel 
Kwan Yat-kau were the principal organizers of a 
major three-day conference on "China and Hong 
Kong at a Crossroads: Prospects for the 21st 
century." Held at Hong Kong Baptist College, 
September 3-5, 1990, it gathered more than 150 
participants from H.K., Macau, the PRC, 
Taiwan, Japan, the U.S., Australia, the U.K. and 
Canada. Paul Evans of York University 
represented the Canada and Hong Kong Project. 

In his keynote address. Professor Wang 
Gungwu, Vice -Chancellor, Hong Kong 
University, outlined promising lines of new 
research by a generation of young scholars in 
U.K., but also offered a somber assessment of 
the prospects of independent scholarly research 
and activity after 1997. 

More than half of the fifty papers were 
delivered by H.K. based social scientists, several 
of whom are collaborating on a long-term 
project on "Hong Kong and Politics in 
Transition." One focus of the project is a 
detailed examination of political attitudes and 
participation. The researchers emphasized their 
interest in cooperative research with Canadian 
scholars in examining the attitudinal and 
behavioural changes that occur after H.K. 
residents emigrate overseas. 




5 



CANADA AND HONG KONG UPDATE 



■i^i^i^iM 



Number 3 



WINTKR 1991 



Excerpts From the Hon. Barbara McDougall's Address 
Canadian Chamber of Commerce, Hong Kong, September 5, 1990 



"Hong Kong has always seemed a bit of 
an enigma to me. It's just a tiny patch of 
land on the edge of China, with few if 
any natural resources. Yet it has become 
a manufacturing giant and a household 
name throughout the Western 
hemisphere. 

It is one of the most modern urbanized 
centres in the world and a major 
international commercial centre. It's little 
wonder that Hong Kong holds a special 
grip on the world's imagination, it is a 
symbol of entrepreneurial drive. And it is 
a gateway - not just to the "mysteries of 
the Orient," but to the fastest growing 
market in world trade today. 

It's also little wonder that the largest 
foreign branch of Canada's largest 
business organization - the Canadian 
Chamber of Commerce - is right here in 
Hong Kong. Or that the Hong Kong 
Canada Business Association, with 1 1 
chapters and more than 3,000 members, 
is the largest bilateral group of its kind in 
our country. 

Organizations like these attest to the 
growing ties between Canada and Hong 



Kong. These lies are based, in part, on 
our shared economic interests. Over the 
last ten years, the Asia-Pacific region has 
become Canada's largest single trading 
area outside of the United States. 

But behind these ties are strong 
human ties between Canada and Hong 
Kong, stretching back well over a 
century. Canada's commitment to Hong 
Kong remains firm whether expressed in 
the movement of people or through 
bilateral agreements with your 
government. 

The movement of people between our 
countries is growing steadily. Over the 
past three years, more than 65,000 Hong 
Kong citizens have decided to make a 
new home in Canada. Moving the other 
way, well over 30,000 Canadians now 
live and work in Hong Kong and about 
150,000 Canadians visit Hong Kong each 
year. 

We have about 15,000 Hong Kong 
students studying in our schools - more 
than a quarter of our total foreign student 
population. Already more than 70,000 
university graduates in Hong Kong 



graduated from Canadian universities. 
This movement of people is, without 
question, a good thing for both Canada 
and Hong Kong. It brings with it a 
movement of ideas, an enrichment of our 
cultures, and new opportunities for 
economic exchange and development. 
And it forms a human bond that will 
endure and prosper well beyond the year 
1997. 



A large proportion of Hong Kong 
immigrants to Canada enter as part of the 
family stream of our programs. I've 
already mentioned the growing numbers 
of Hong Kong people who decide to 
come to Canada. Many of those have left 
close family behind. As far as possible, 
we want to help those families come 
together again in Canada. 



Hong Kong entrepreneurs and 
investors are putting their faith in Canada 
and investing heavily in Canadian 
business and industry. By doing so, they 

McDougall's Address cont'd, page 2 



Two Chinese-Canadian Development Projects in Richmond, B.C 

by Hugh Xiaobing Tan 
Vancouver 



Two significant development projects, 
financed by the Chinese Canadian 
community in Vancouver, are the 
International Buddhist temple and the 
new Aberdeen Mall. Both are located in 
Richmond, a suburb south of Vancouver 
where many new immigrants from Hong 
Kong, as well as Taiwan, have recently 

per 

F1029.5 
H6 C36 



settled. Since it is estimated that one out 
of every three or four people living in the 
area are now of Chinese origin, 
Richmond was a logical place for this 
development. 

Located on Steveston Highway, the 

B.C. Development cont'd, page 14 




McDoilgall's Address, from page 1 

are contributing directly to our economic 
growth, and they are creating jobs in 
areas where jobs are needed, as was 
intended. 

During consultations on immigration 
levels over the past year, I found support 
for the Business Immigration program in 
all parts of Canada. Concerns were 
expressed though about the need to 
encourage these immigrants to consider 
other destinations in Canada besides the 
traditional ones of Montreal, Toronto and 
Vancouver. 

In addition, Canadians want to see the 
intended benefits of this program 
realized. They do not want to see people 
simply using the program as a short-cut to 
obtain a Canadian passport. As with 
anything new, there were some problems 
to be ironed out. But we have recently 
taken steps to improve the management 
and effectiveness of the program. 

We must protect the integrity of the 
program by eliminating suspect 
investment plans and by discouraging 
unscrupulous operators. As you may 
know, new regulations for the investor 
category were made public in August. 
These new regulations are not designed to 
discourage the legitimate investor 
immigrant - here in Hong Kong or 
anywhere else - from coming to Canada. 
Rather, they are intended to make it very 
clear to all business immigrants that we 
expect from them a certain level of 
commitment to Canada. The business 
program will continue, although not as a 
dominant element of our immigration 
program. 

We welcome the legitimate business 
immigrant and acknowledge that most are 
prepared to invest for the benefit of their 
chosen country and to participate fully in 
all aspects of Canadian life. In a general 
sense, that is true for all immigrants to 
Canada, whatever category they may fall 
under. A basic requirement for all 
immigrants is that they share a 
commitment to Canada and to Canada's 
future. That is why we cannot and will 
not allow our immigration programs to be 
used simply as a kind of 'insurance 
policy.' 

There has been speculation in the 
media recently that we are cutting back 
on immigration, specifically from Hong 



Kong. I cannot stress too strongly that 
this speculation is false. 

Because the number of immigrants 
coming to Canada has been much higher 
than expected this year, we have been 
forced to temporarily slow down visa 
issuance. But this temporary slow down 
is not a cut back, and it is definitely not 
aimed at Hong Kong. It applies 
universally to all countries, and it is 
intended to give our service and support 
agencies time to adjust to the increased 
demands. We have taken, and we will 
continue to take, whatever steps are 
necessary to ensure that the flow of 
people into Canada is managed properly. 

In the case of Hong Kong, we are 
working to ensure that the thousands and 
thousands of immigrant and temporary 
visa applications are handled as 
effectively as possible. Despite 
significant resource restraints, we have 
been able to put extra resources into our 
Hong Kong office as part of our 
commitment to better management of the 
immigration program. 



We have strong and growing interests 
in Hong Kong and its people - trade, 
education and most importantly, the 
people to people relationship. The 
principles underlying our immigration 
policy towards Hong Kong are stability 
and continuity. The ties of family, which 
strengthen daily, are the bedrock of our 
approach to Hong Kong and its people. 

The most hopeful prospect for Hong 
Kong's future lies in increased 
opportunities for Hong Kong citizens to 
manage their own affairs. We encourage 
the rapid development of democratic 
institutions and processes within the 
territory. 

We care about what happens in Hong 
Kong, and we have spoken out on various 
occasions. As Prime Minister Mulroney 
said last fall in Singapore, just before the 
Commonwealth Heads of Government 
Meetings, 'Hong Kong involves us all, as 
we have to accept part of the 
responsibility and provide some 
leadership.' 

We strongly support and will continue 
to work for Hong Kong's participation in 
the emerging web of regional institutions, 
including the Asia-Pacific Economic 
Cooperation and the Pacific Economic 
Conference. 



We are working to set in place a wide 
network of bilateral agreements between 
Hong Kong and Canada. The purpose of 
this network will help to ensure that the 
special relationships between Hong Kong 
and Canada will remain in place after 
1997. We have already begun work on 
agreements involving film co-production, 
mutual legal assistance and an exchange 
program involving our two governments. 

Canada's commitment to Hong Kong 
remains firm. We are determined to see 
Hong Kong prosper. Together, we will 
work towards this goal." 

Visits to and from 
Hong Kong 

by Diana Lary 
Toronto 

Hon. Barbara McDougall, Minister 
of Employment and Immigration, visited 
Hong Kong from September 1st to 6th to 
familiarize herself with the emigration 
situation there, and to talk about Canada's 
immigration program. (See Excerpts) 
Her comments were positive, but she 
made it clear that there would be no 
special concessions from Canada on 
delayed visas for Hong Kong emigrants 
to Canada. 

Martin Lee, Hong Kong legislative 
councillor, visited Canada from October 
25th to November 3rd. The theme of his 




visit was the promotion of confidence in 
Hong Kong's future through the 
strengthening of democratic institutions 
and the protection of human rights. In 
Toronto he was given a luncheon by the 
Hong Kong-Canada Business Association 
and had discussions with faculty 

Visits cont'd, page 3 



2 UPDATE 



- 



CANADA AND HONG KONG UPDATE 

Editors Diana Lary 

Janet A. Rubinoff 
Illustration & IMS Creative 

Design Communications 

Contributors Francis Allard 

Philip Calvert 
Ho-yin Cheung 
Harriet Clompus 
Susan Henders 
Keung-sing Ho 
Mark Rowswell 
Hugh Xiaobing Tan 

Canada and Hong Kong Update 

is published three times a year by the 
Canada and Hong Kong Project, 
Joint Centre for Asia Pacific Studies, 
Suite 200K, 

Administrative Studies Bldg. 
York University, 4700 Keele St.. 
North York, Ontario, 
CANADA M3J 1P3 



Telephone: 
Fax: 



(416) 736-5784 
(416)736-5687 



Opinions expressed in this newsjoumal 
are those of the author alone. 

CANADA AND HONG KONG PROJECT 

Director Diana Lary 

Coordinator Janet A. Rubinoff 

Advisory Board David Bond 
Denise Chong 
Maurice Copithome 
Dr. Bernie Frolic 
John Higginbotham 
Graeme McDonald 
Dr. T.G. McGee 
Jules Nadeau 
Dr. William Saywell 
Dr. Wang Gungwu 
We want to thank the Dormer Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which 
we consider to be of great significance for 
the future of the country. 



In This Issue... 

McDougall Address 1 

Richmond Development Projects 1 

Immigration to Quebec 3 

Airport Development Scheme 5 

Immigration Statistics 6 

Destinations 7 

Media in Hong Kong 8 

UK Nationality Package 10 

Statistical Imponderables 12 

British Ministers 13 



Visits, from page 2 

members of the Joint Centre for Asia 
Pacific Studies. 

In Ottawa he met Justice Strayer, who 
was involved in the drafting of Hong 
Kong's bill of rights, was hosted for 
lunch by the Department of External 
Affairs, met a number of DEA officials, 
including Raymond Chretien, Acting 
Undersecretary of State, and had dinner 
with the Hong Kong Students' 
Association. He also met officials from 
the Justice Department, and spoke to the 
Canadian Institute for International Peace 
and Security about the future of Hong 
Kong. He held talks with a group of 
members of parliament led by John 
Bosley, chairman of the Standing 
Committee on External affairs. 

In Vancouver he met the deputy 
mayor, members of the Hong Kong- 
Canada Business Association, visited the 
Asia Pacific Foundation, and talked to 
Chinese students, writers and scholars. In 
Victoria he met Lieutenant Governor 
David Lam and had discussions with 
provincial officials. Throughout his visit 
he was interviewed by national and local 
media. 

Sir David Ford, Chief Secretary of 
the Hong Kong Government, was in 
Vancouver and Victoria from November 
14th to 16th to promote Hong Kong. His 
remarks were generally hopeful and 
reassuring about the future of Hong 
Kong. 

Hon. Pierre Cadieux, the Solicitor 
General, made a brief visit to Hong Kong 
in November, and signed an agreement 
with the Hong Kong Government calling 
for increased cooperation in combatting 
drug smuggling. 

Premier Joe Ghiz of Prince Edward 
Island visited Hong Kong in November 
to open a PEI office there. An officer for 
Newfoundland has been attached to the 
Commission. Eight out of the ten 
provinces now have representation in 
Hong Kong, and the other two (New 
Brunswick and Nova Scotia) are 
represented by the office of the Council 
of Maritime Premiers. This is a higher 
level of representation than any other city 
in the world. 



Hong Kong et la Politique 
d'Immigration du Quebec 

par Francis Allard 
Toronto 

Jusqu'a l'an demier, e'est a Hong 
Kong que Ton trouvail lc plus important 
bureau d'immigration du Qudbec a 
l'dtrangcr, un poste desund a sollicitcr ct 
a attirer les capitaux. Bien que 
maintenant reldgues au second rang par 
ceux de Paris, les services d'immigration 
du gouvernement quebecois a Hong 
Kong continuent a jouer un role 
preponderant. En 1989, 48% des 2 851 
dossiers approuvds pour l'obtention des 
Certificats de selection du Qudbcc (CSQ) 
dans le «territoire» de Hong Kong 
(comprenant la Coree et Taiwan mais 
dont le volume est moindre par rapport a 
Hong Kong proprement dit) dtaient des 
dossiers de «gens d'affaires», e'est-a-dire 
des investisseurs et des entrepreneurs. 

Ces donnees contrastent avec celles de 
l'ensemble des autres postes du Quebec a 
l'etranger, ou seulement 12% des «dossiers 
approuv6s» entrent dans cette categoric 
Guide par une politique d'immigration 
visant en partie a ralentir le decroissement 
demographique auquel il fait presentement 
face, le Quebec explique que son intention 
est d'etablir des services d'immigration la 
ou l'interet se fait sentir. La presence a 
Hong Kong demeure toutefois 
essentiellement economique. Dans un 
communique^ de presse recent intitule' 
immigrants gens d'affaires a Hong Kong, 
Quebec maintient ses objectifs», la 
ministre des CommunauuSs culturelles et 
de l'lmmigration du Quebec, Mme 
Monique Gagnon-Tremblay, disaiu «Je 
crois qu'en augmentant de facon 
significative le personnel et les ressourccs 
du Service d'immigration a Hong Kong au 
cours des demieres annees, le Quebec a eu 
1 'occasion de dehiontrer a quel point ces 
candidats nous int6ressenL» Toute 
evaluation des tendances futures a propos 
de l'lmmigration des gens de Hong Kong 
vers le Qudbec doit toutefois tenir compte 
non seulement des facteurs economiqucs 
prevalants, mais aussi des courants 
culturels et linguistiques exislant au sein de 
la societe quebecoise. 

Le probleme demographique auquel 
fait face le Quebec depuis deja plusieurs 
annees est le resultat d'un taux de 

Quebec cont'd, page 4 



UPDATE 3 



Quebec, from page 3 

naissance faible, d'une population 
vieillissante, et aussi d'une immigration qui 
ne reflete pas son poids demographique a 
l'interieur du Canada (26%). Par exemple, 
en 1989, le Qudbec ne recevaitque 17,7% 
de tous les immigrants arrivant au pays. 
Visant a corriger cette disproportion, la 
nouvelle entente entre le gouvernement 
federal et le Quebec garantit a ce dernier un 
minimum de 25 a 30% des nouveaux 
immigrants. Une telle augmentation est 
salutaire sur le plan demographique. On 
doit toutefois tenir compte du contexte 
economique et d'une population 
quebecoise de plus en plus irritde par 
l'inhabilete de plusieurs nouveaux 
immigrants a s'intdgrer a la majorite 
francophone. 

En 1989, malgrd un objectif fixd a 40% 
d'immigrants francophones, seulement 
28,4% des nouveaux venus parlaient 
francais, tandis que 34,1% parlaient 
l'anglais et que 49,6% ne parlaient ni l'un 
ni l'autre. A cause des problemes 
engendres par plusieurs de ces derniers, il 
n'est pas surprenant que le Quebec, 
desirant affirmer avec plus d'emphase que 
jamais son identitd culturelle, s'engage 
maintenant a attirer une plus grande 
proportion d'immigrants francophones de 
pays comme la France et la Belgique. Bien 
qu'il soit difficile de prdvoir les rdsultats, il 
semble bien que la grille de selection 
uulisde par le Qu6bec dans son choix 
d'immigrants dits «inddpendants» puisse 
l'aider a atteindre ses objectifs. Certains 
predisent que cette grille, dans laquelle sont 
presentement alloues des points pour la 
«langue» et r«adaptabilitd», sera bientot 
modifiee dans le but de donner au 
processus de selection une flexibility 
encore plus grande. 

Comment situer l'immigrant de Hong 
Kong dans ce contexte? En premier lieu, il 
va sans dire que les considdrations 
dconomiques jouent encore un role 
important Au cours de sa conference de 
presse a Hong Kong, en aout dernier, Mme 
Monique Gagnon-Tremblay declarait «Je 
puis vous assurer, qu'en 1990, nous 
sclectionnerons au moins le meme nombre 
d'immigrants gens d'affaires que par les 
anndes prdcddentes.(...) J'ai aussi precisd 
que nos objectifs de selection pour 1990 
sont les memes qu'en 1989.» 

Par ailleurs, la decision recente du 
gouvernement fdddral de permettre au 



Qudbec de maintenir le montant 
d'investissement minimum a $250 000 
(par opposition aux $350 000 requis pour 
certaines autres provinces) a ete bien 
recue par les fonctionnaires de 
1'immigration de la Delegation du 
Quebec a Hong Kong: on se dit confiant 
que le Quebec pourra ainsi demeurer une 
destination attrayante pour les 
investisseurs de Hong Kong. 

Pierre Saint-Louis, avocat specialise 
en immigration et domicilid a Hong Kong 
depuis quelques annees, observe le 
phenomene d'une diminution marquee 
dans la «qualite economique* des 
Hongkongais interesses a investir au 
Quebec. L'avocat montrdalais ajoute que 
le Quebec est maintenant plus selectif 
dans le choix des investisseurs et des 
entrepreneurs. Jusqu'a maintenant, la 
perception de plusieurs de ces «gens 
d'affaires* a Hong Kong etait que les 
chances d'obtenir un visa pour le Canada 
dtaient meilleures si Ton s'adressait a la 
delegation du Quebec plutot qu'au 
Commissariat du Canada. Le fait que le 
Quebec devienne plus vigilant envers ces 
«gens d'affaires* est surement lid au fait 
qu'un bon nombre d'entre eux (pres des 
deux tiers, selon certains), n'y sejournent 
qu'une breve pdriode de temps avant 
d'aller s'installer a Toronto ou a 
Vancouver ou existent d'importantes 
communautds chinoises. Bien que ces 
investisseurs doivent ddposer $250 000 
chez un courtier reconnu au Qudbec, 
aucune loi ne les empeche d'aller vivre 
ailleurs au pays. Plutot que de servir de 
simple porte d'entree au reste du pays, le 
Quebec aimerait mieux profiter 
pleinement du dynamisme des hommes 
d'affaires du Manhattan de l'Asie. 

Personne ne doute du fait que les 
immigrants de Hong Kong sont en grande 
majoritd de vaillants travailleurs; ils 
n'abusent que rarement des services 
sociaux offerts aux Canadiens. Ils sont 
toutefois moins portds a s'intdgrer a la 
culture quebecoise francophone que les 
autres minorites. Jean Larue, chef de la 
section Asie du ministere de 
l'lmmigration a Montreal, souligne que le 
Quebec, tout en visant maintenant a 
sdlectionner des candidats susceptibles de 
mieux s'intdgrer, entreprend dgalement 
de pourvoir aux besoins des nouveaux 
immigrants afin de les convaincre qu'ils 
sont les bienvenus au Qudbec et qu'ils 
pourront y prospdrer. A ce sujet, l'entente 



recente entre Ottawa et le Qudbec en 
matiere d' immigration comprend 
justement le transfert a cette province de 
tous les programmes fdddraux 
d'intdgration linguistique, culturelle et 
economique. II faut aussi signaler qu'a 
Hong Kong meme, un nombre 
grandissant de personnes suivent des 
cours a l'Alliance Francaise dans le but 
evident d'amdliorer leurs chances d'etre 
admis au Quebec. De plus, dans ces 
memes dcoles, le Qudbec a lui-meme mis 
sur pied un programme de Iangue destine 
a faire connaitre des elements de la 
culture quebecoise a ceux qui ddtiennent 
ddja un CSQ. Bien que positives et 
encourageantes, ces demarches ne 
peuvent quand meme pas garantir de 
facon absolue que le nouvel arrivant de 
Hong Kong voudra bien s'dtablir de 
fa?on permanente dans la province 
francophone et assimiler sa culture. 

En 1989, plus de 20% de tous les CSQ 
dtaient dmis a Hong Kong. Dans un 
avenir rapproche, il est probable que le 
gouvernement du Qudbec s'intdressera 
moins a ces moins a ces immigrants. 
Cette annde, on ne prevoit qu'une ldgere 
diminution du nombre de CSQ dmis a 
Hong Kong (par rapport a plus de 8 000 
en 1990), mais il faut souligner qu'il y 
aura en fait une augmentation du nombre 
total d'immigrants que le Qudbec s'attend 
arecevoiren 1991. 

En vue du regain d'interet du Quebec 
pour une immigration provenant des pays 
francophones de 1' Europe, du 
mecontentement de plus en plus grand des 
Quebecois, et du refus d'une bonne partie 
des Hongkongais de s'dtablir de facon 
permanente au Qudbec, on peut prevoir 
que leur pouvoir d'investissement dans la 
province demeurera leur principal atout. 
Au cours des prochaines annees, non 
seulement peut-on s'attendre a une 
diminution de la «qualite dconomique» de 
ceux qui n'ont pas encore rdussi a quitter 
Hong Kong de facon definitive, mais il 
faudra dgalement considdrer les problemes 
soulevds par les demandes de rdunion de 
famille (faites par les Hongkongais qui 
resident ddja au Qudbec). Pour des raisons 
humanitaires, la majorite de ces requetes 
sont acceptdes. Les beneficiaires de ce 
programme auront tendance a demeurer 
avec leurs proches au Qudbec, c'est 
certain, mais il s'agit toutefois d'un groupe 
plus agd qui a plus de difficultd a se 
trouver des emplois. 



4 UPDATE 



Notre analyse nous porte done a 
predirc non seulemcnt unc rdduction dans 
ce mouvement migratoire vers le Quebec, 
mais egalement un changement dans le 
type d'immigranis admis dans cette 
province. On peut s'allcndre a une 
diminution du nombre de «gens 
d'affaires» et a une augmentation dans le 



nombre de «parents aidds.» Quoi qu'il en 
soit, une fois vidd de ses riches citoyens. 
Hong Kong deviendra certainement, dans 
les annees a venir, une source moins 
attrayante d'immigranis. 

Je remercie Jules Nadeau pour son aide 
dans la redaction de eel article. 



Hong Kong's Port and Airport Development Scheme 

by Philip Calvert 
Ottawa 



Hong Kong is embarking on an 
ambitious and expensive project involving 
the construction of a new airport and 
container shipping complex on Lantau 
island. A massive undertaking, which will 
involve extensive land reclamation on 
Lantau as well as construction of a fixed 
crossing, the US S16.3 billion project has 
become a subject of public disagreement 
between the governments of Hong Kong 
and Beijing. This has cast something of a 
cloud over the financing of the project. 

In addiuon to the economic aspects of 
PADS (Port and Airport Development 
Scheme), the project has a great deal of 
political symbolism. Undertaking a project 
of this magnitude in the shadow of 
China's takeover of the colony in 1997 is 
in part an attempt to express optimism for 
the future of Hong Kong as a Special 
Administrative Region of China. Thus, the 
disagreement between Hong Kong and 
Beijing over the project has strong political 
overtones and reflects the complex 
dimension which 1997 adds to economic 
and policy decisions taken in the 1990's. 

Scheduled for completion in 1997, 
PADS is to be funded from a combination 
of surplus reserves in Hong Kong and 
private sector financing from international 
banks. In public statements, Hong Kong 
originally maintained that the project is a 
local economic matter. However, it 
softened this position when several 
representatives of the Beijing government 
(including Zhou Nan, head of the New 
China News Agency's Hong Kong office 
and the highest-ranking Chinese official in 
Hong Kong) protested that the project 
would be a liability for China as the 
financial implications of the project 
extended well beyond 1997 and urged that 
it be delayed. Further, they argued Hong 
Kong had not been keeping Beijing 
informed on the project. Before issuing 
any statement approving the project, they 



wanted to see a detailed financial and 
engineering analysis. 

Tensions between the two governments 
were also heightened when Hong Kong 
announced invitations for bids on the 
fixed crossing component of the project. 
The situation became even more 
complicated when Gordon Wu of 
Hopewell Holdings, who had been 
involved in initial planning of the project 
since 1986, publicly criticized this move, 
saying that the fixed project component 
could be replaced by less expensive 
alternative links. He fiuther criticized the 
Hong Kong government for not consulting 
as widely as it might have on the project. 
Hong Kong's position was also 
undermined by Lord Caithness, the newly 
appointed British Minister responsible for 
Hong Kong, who stated in early October 
that the project would be a "liability" for 
China after 1997 and that they ought to be 
consulted more on the project. 

Later the same month, perhaps in 
response to this pressure, experts from 
both governments met for eleven days in 
Hong Kong to review the project. The 
atmosphere, from all reports, was more 
cordial than might have been expected in 
light of the acrimonious statements 
leading up to it. However, after the 
meetings the Chinese side let it be known 
that while they were still considering the 
project, they remained "unconvinced" of 
the feasibility of the scheme. For about six 
weeks, it seemed that confidence in the 
project was building again until Lu Ping, 
the new director of Beijing's Hong Kong 
and Macao Affairs Office, publicly stated 
that Hong Kong's pursuit of the project 
risked the financial stability of the colony 
and its currency. He demanded that 
Beijing be given a say in the membership 
of the body overseeing the project. 

Despite the strength of this public 
stand, officials involved in the process 



have indicated that Beijing privately 
recognizes the need for the project and 
that their public criticisms reflect a 
genuine desire to be more frequently and 
thoroughly consulted on its development. 
Earlier in the autumn, Hong Kong 
Governor Sir David Wilson had stated he 
felt that Beijing was warming to the 
project. Lu Ping's predecessor, Ji Pengfei, 
told a visiting Hong Kong delegation in 
September that Beijing had agreed to the 
project "in principle". One Hong Kong- 
based senior official in the New China 
News Agency apparently confirmed that 
the project would go ahead "eventually" 
because China has "no choice" - a 
statement echoed by officials in Beijing. 
China's Guangdong province, in a 
separate move, has already expressed its 
approval, reportedly in exchange for 
guaranteed labour and raw materials 
contracts. 

There is no doubt that a new airport is 
needed in Hong Kong. The main issue 
seems to be Beijing's desire to have more 
of a say in the project for reasons of 
economics, politics and international 
prestige. Nevertheless, interested parties 
should not be complacent; controversy 
between the two governments and delays 
in Beijing's expression of approval of the 
project may delay financing from the 
private sector and, thus, drag out the 
implementation of the new airport and 
port scheme. Nor should Chinese 
domestic politics be ignored. The outcome 
of the current power struggle at the upper 
levels of the Chinese government may 
have an impact on its stance on the project 
as well. 

One thing is certain. When the project 
goes ahead, international competition for a 
piece of the action is going be intense. 
Attracted by the opportunities they see in 
PADS, a number of Canadian companies 
are actively marketing their capabilities in 
engineering, aerospace and financial 
management and have travelled to Hong 
Kong in January to participate in Airport 
discussions on the scheme. Canadian 
governments, at the federal and (in one 
case) the provincial level, are actively 
involved in mobilizing Canadian 
resources, an indication that the project is 
being taken as a serious and potentially 
lucrative opportunity. No one will feel 
really secure though until Hong Kong and 
Beijing come to some kind of agreement 
on the issue. 



UPDATE 5 



Immigration to Canada, 1990 



by Diana Lary 
Toronto 

During 1990, interest in Hong Kong in 
migrating to Canada remained strong. As 
applications continue at high levels, a 
major concern in Hong Kong will be the 
back-log. The average processing time, 
the period between making a formal 
application, including medicals, and the 
final disposition of a case, was 288 days 
in 1988. By 1989 it had risen to 384 days, 
and by 1990 to 461 days. The future 
processing time will depend on the 
number of applications. 

Immigrant applications screened, 
by class, Hong Kong - 1990* 



Family 


14528 


Conv. refugee 





Designated 


124 


Retired 


3416 


Assisted relative 


5358 


Entrepreneur 


16908 


Investor 


6709 


Self-employed 


768 


Independent 


5955 


Not stated 


16 



Total 



53782 



* all figures given here and in subsequent 
charts refer only to the first eleven 
months of 1990. 

Figures for applications should not be 
closely linked to the number of visas 
issued, many of which will be the result 
of applications made in 1989 or earlier. 

Visas issued, by class, 
CLPR Hong Kong - 1990 



Family 

Conv. refugee 
Designated 
Retired 

Assisted relative 
Entrepreneurs 



2703 p 

5407 t 

P 

t 

282 p 

691 t 

524 p 

1801 t 

880 p 

2529 t 

1078 p 

4382 t 



Investors 
Self-employed 
Independent 
Not stated 

Total 



687 p 

2944 t 

73 p 

224 t 

2610 p 

7079 t 

71 p 

205 t 

8905 p 

25262 t 



p = principal applicant; t = principal 
applicant plus dependents. 

The number of visas issued in 1990 did 
not increase much over the previous year - 
from 24,132 in 1989 to 25,262 in 1990 - 
but shifts in the composition of the 
movement continued, in the same general 
direction as in 1989. The family class 
(family and assisted relatives) made up 
3 1 .42% of the total (7936 people), a 
substantial increase over the 22.9% in 
1989. The independent class, at 28% 
(7079), continued to decline, from 54.5% 
in 1988 and41.4% in 1989. The business 
class (entrepreneurs, investors and self- 
employed) meanwhile was still increasing; 
in 1990 these categories accounted for 
29.88% of the total (7550), up from 22.9% 
in 1989, and 13.7% in 1988. The main 
increase was in the investor category, 
which went from 699 in 1988, to 1,132 in 
1989 to 2,944 in 1990. The entrepreneur 
category has been stable over the past three 
years, as has the self-employed category. 
The decline in the independent class may 
be caused in part by the fact that family and 
business classes have priority in 
processing. We should not assume that the 
decline in the independent class means that 
the calibre of immigrants is declining, as 
measured by the point system for 
independent immigrants. Some people who 
could qualify in the independent class still 
apply in the family or business class in the 
hope of speedier processing. 

Another noticeable shift is in the 
number of dependents per principal 
immigrant. In 1989 the ratio was 2.2:1, in 
1990, 2.3: 1 . The ratio varied considerably 
by class, ranging from a low of 1 : 1 for 
family class, to 1.7:1 for independent 
immigrants, to 3.28:1 for investors. 



Landings in Canada, CLPR Hong 


Kong - 1990 




First quarter 


4089 


Second quarter 


7753 


Third quarter 


12124 


Fourth quarter 


3177 



Total 



27143 



The total number of landings in Canada 
in 1990 was up from 19,994 in 1989 and 
23,286 in 1989. The 1990 figure could 
include people who were visaed up to a 
year before the date they actually arrived in 
Canada, so may include many people who 
were visaed in 1989. The figure may be 
still higher, because the figures we have so 
far cover only until the end of November. 
Many people moved in the third quarter; 
one possible explanation is that some of 
these people were families who planned to 
arrive in Canada for the start of the school 
year. 

Landings, CLPR Hong Kong, 
by province, 1990 



Alberta 


2335 


B.C. 


6965 


Manitoba 


323 


New Brunswick 


39 


Newfoundland 


17 


NWT 


17 


Nova Scotia 


91 


Ontario 


15205 


PEI 


12 


Quebec 


1825 


Saskatchewan 


313 


Yukon 


1 



Total 



27143 



In terms of the declared destinations of 
immigrants within Canada, Ontario is 
still by far the most popular destination; 
in 1990 the percentage was 56%, up 
slighUy from 53.98% in 1989. British 
Columbia is still in second place, at 
25.66%, slighdy up from 23.82% in 
1989. Alberta is fourth, at 8.60%, and 
Quebec fifth at 6.72% 

We would like to thank the Strategic 
Planning and Research Branch, 
Employment and Immigration Canada, 
for supplying us with these statistics. 



6 UPDATE 



Destinations 

In the continuing emigration from Hong 
Kong, changes in immigration policies 
for receiving countries get close attention 
in the territory. These are some of the 
changes noted over the past six months. 

Changes in US Policy 

On October 28th the US Congress passed 
a new immigration bill which will have 
important effects for Hong Kong. 
Amongst many provisions, most of which 
are global, the bill increases the number 
of Hong Kong residents who can 
emigrate to the States from the present 
5,000 p.a. to 10,000, until 1994, and 
thereafter to 27,000. Part of the increase 
will be taken up by people already in the 
States who have not yet reached their turn 
on the previous quotas. Special 
provisions are to be made for employees 
of the US Consulate, American 
companies trading in Hong Kong, and 
employees of the Foreign Broadcast 
Information Service. Some of those 
granted visas in the future will have the 
option of entering the States at any time 
up to 2001. This provision is designed to 
encourage people, especially those 
employed by US companies, to stay in 
Hong Kong as long as possible. 

Dominican Republic 

The Dominican Republic is one of a 
number of Caribbean countries which are 
encouraging the immigration of Hong 
Kong residents. For an investment of 
USS50,000 and a six month stay in the 
country, landed immigrant status may be 
acquired which, after two years, may be 
transformed into citizenship. 

Tonga 

Investors may acquire a "protected 
person passport," which gives them a 
certificate of nationality but not 
citizenship. Until June, 1990, such 
passports could only be acquired on 
payment of a lump sum; payments can 
now be made on an instalment basis 
spread over three years. The total sum 
involved is USS1 1 ,868 for an individual 
or 522,550 for a family. Protected 
persons are not required to move to 
Tonga but are encouraged to visit. 



Hungary 

One new potential destination, still only 
at the general proposal level, is Budapest. 
The mayor of Budapest is said to have 
come up with a proposal to establish a 
Hong Kong enclave on an island in the 
Danube. 



Immigration Policy 

Canada's global ceiling for 
immigration, which was 180,000 for 
1990, is to be raised to 220,000 for 
1991 and 250,000 for the next four 
years. Although the global figure 
makes no specific reference to Hong 
Kong, unlike the new US 
immigration policy (see 
DESTINATIONS), the higher figure 
can only be helpful to people 
wanting to move here from Hong 
Kong. There will not, however, be 
any special programmes for Hong 
Kong, such as delayed visas or an 
expansion of the family and/or 
assisted relative class. Potential 
Hong Kong immigrants may be 
affected by the raising of the 
minimum amount needed to qualify 
as an investor immigrant - now 
$250,000. The new levels were 
announced as Canada was officially 
entering a recession, but there has 
been little protest over their raising. 

Emigration Rate 

The Hong Kong government 
believes that the rate of emigration 
is easing. The number of people 
seeking US and Canadian visas is 
declining slightly. At the same time 
the number of people returning to 
Hong Kong may be higher than was 
previously estimated. Up to 30% of 
those who go abroad already have or 
will return after they have acquired 
foreign citizenship. Mrs. Regina 
Yip, Deputy Director of 
Administration, reported these 
estimates in December. She made it 
clear that these figures were 
"guesstimates," since there are no 
firm figures either for the total 
number of visa applicants or for 
returnees (Hong Kong Digest, 
December 19, 1990). 



THE EMIGRANT 

The emigration from Hong Kong has 
spawned an emigration industry. Much 
of its activity is reflected in the pages of 
The Emigrant, a glossy, highly 
professional magazine published 
monthly by Trade Media. It is directed 
at middle-class professionals in Hong 
Kong and Taiwan, and aims to provide 
information and analysis on emigration 
possibilities. The magazine is put 
together by an eight person team in 
Hong Kong with contributions from 
about thirty free-lancers abroad. It does 
not specifically encourage emigration. 
On its masthead is the statement: "This 
magazine neither advocates nor 
discourages emigration. Its purpose is to 
offer information so that people can 
make their own choice". 

In the two years since it started (the 
first issue appeared on the auspicious 
date of August 8th, 1988), its size has 
expanded from 102 pages (42 
advertising) to 140 pages (74 
advertising) for 1990. The largest 
section of the magazine is devoted to 
Destinations, which gives detailed 
descriptions of life and opportunities in 
countries which receive immigrants. At 
first the section concentrated on 
Australia, Canada, New Zealand and the 
United States, but after June, 1989, the 
range of countries covered was 
expanded to include previously less 
desirable destinations such as Tonga and 
Belize. These articles are very specific; 
in the November, 1990 issue, for 
example, the major article on Canada is 
about Markham, Ontario. 

The magazine always includes at 
least one article on an emigrant's 
experience abroad. The November issue 
looks at Andrea Eng, an outstandingly 
successful real estate agent in 
Vancouver. One section of the magazine 
is devoted to current emigration 
regulations from various countries; the 
occupational rating for independent 
immigrants to Canada, for example, is 
updated regularly. Though the magazine 
is bilingual, much of the advertising is 
in Chinese only. The advertisers range 
from emigration consultants, to schools 
and universities, to moving companies. 
Circulation Office: Dataford Ltd., 
Block A, 13/F, Vita Tower, 29 Wong 
Chuk Hang Road, Hong Kong 



UPDATE 7 



Precarious Future of the Media in Hong Kong 



by Susan Menders 
Hong Kong 

Although Hong Kong faces no serious 
challenges to its role as Asia's press and 
publishing centre, it may now confront 
threats from within. Britain's legacy of 
colonial laws, China's intimidation 
campaign against local media, and self- 
censorship threaten what is regarded as 
an island of press freedom in the sea of 
intolerant regimes that govern much of 
East and Southeast Asia. 

"I don't necessarily think Beijing is 
going to send in the big guns in 1997," 
Cliff Bale, an executive committee 
member of the Hong Kong Journalists 
Association, said in an interview. "It's 
the subtle stuff that is really damaging - 
the intimidation and currying favour in 
media circles. China is already doing 
that." 

Barry Wain, editor of the Hong Kong- 
based Asian Wall Street Journal, says 
local media began accommodating 
Beijing's new role almost immediately 
after Britain and China signed the 1984 
Joint Declaration, the agreement under 
which China will regain sovereignty over 
the colony in 1997. In response to 
banquets, gifts and other enticements 
offered by Beijing officials, relief that 
China would not retake the territory by 
force or just plain fear of reprisals, local 
editorialists became visibly less critical of 
the Beijing regime, Wain told a gathering 
of the Asia-Pacific Foreign Exchange 
Assembly in Hong Kong. Reporters have 
avoided topics that might upset the 
Chinese government. 

With China's carrot and stick tactics 
very much on their mind, many 
journalists fear that self-censorship is 
already eating away at the freedom and 
independence of the media. In a recent 
survey of local journalists, Joseph Man 
Chan, a lecturer in the Journalism and 
Communications Department at the 
Chinese University of Hong Kong, found 
that about half of the respondents said 
they thought other journalists were 
apprehensive when they wrote reports 
critical of the Chinese government 
About 20 per cent said they themselves 
were apprehensive about writing such 
stories. Reporters pick up cues about 
what is politically acceptable from their 



organizations's editorials and their 
bosses' behaviour, Chan said in an 
interview. "They know that the Chinese 
government remembers, that the Chinese 
government will punish them, if not now, 
then later." 

Self -censorship is a problem for media 
around the world, but conditions in Hong 
Kong could make local reporters 
particularly vulnerable to its influence. 
Lorraine Hahn, a Canadian journalist 
reporting for Hong Kong's privately 
owned TVB, says salaries are generally 
low, so reporters tend to be young and 
inexperienced. Management styles are 
hierarchical and reporters have little 
influence over editorial decisions. 

Hong Kong's media are no stranger to 
the pressures of Chinese politics. Over 
the past century, the colony has played 
host to dozens of partisan newspapers 
taking advantage of its liberal press 
climate to wage propaganda wars. Even 
today, both the Mainland-based Chinese 
Communist Party and its rival, the 
Taiwan-based Nationalist Party, continue 
to own, subsidize or maintain close links 
with local newspapers. 

According to Chin-Chuan Lee of the 
School of Journalism and Mass 
Communication at the University of 
Minnesota, it was not until 1970 that 
Hong Kong newspapers moved beyond 
their preoccupation with Chinese politics 
- in particular, the Communist- 
Nationalist battle - to pay significant 
attention to local Hong Kong affairs. 
Today several market-oriented 
newspapers with "centrist" Hong Kong 
perspectives, but no binding partisan ties, 
dominate local circulation wars. A 
significant amount of space is still 
reserved for the discussion of Chinese 
politics which is of salient concern for 
Hong Kong citizens. 

At the same time Joseph Man Chan 
maintains that this highly charged 
political atmosphere has helped make 
Hong Kong one of the most competitive 
print media markets in the world. While 
two newspaper cities are a rarity in 
Canada, Hong Kong readers can chose 
from more than 60 newspapers, about 20 
of which concentrate on news and 



opinion while the rest (known locally as 
the "mosquito" press) devote themselves 
to entertainment, gossip and horse racing 
tips. Dozens of magazines - including 
locally-headquartered international 
publications like the Asian Wall Street 
Journal, Asiaweek and the Far Eastern 
Economic Review - two television 
stations (each with English and 
Cantonese channels) and two radio 
networks (also with both English and 
Cantonese stations) compete for 
consumers in this city of almost six 
million inhabitants. New satellite 
television stations and a third radio 
network are in the planning stages. 

"We have a market place of ideas in 
Hong Kong and it is very competitive, 
stretching from the far right to the far 
left," Chan claims. "Hong Kong has 
always been a publication hotbed and 
now it is becoming a communications 
centre for Asia too." 

Chan also maintains that this 
competitiveness and diversity could 
inhibit the extent and speed of the 
Chinese government's ability to muzzle 
its media critics after 1997. As long as 
local media businesses are governed by 
market forces and there is consumer 
appetite for dissenting voices, some news 
organizations will take a critical editorial 
position if only to attract customers. The 
growing number of media companies 
listed on the stock exchange could be less 
vulnerable to political pressure because 
they have to answer to profit conscious 
shareholders, even if their proprietors 
succumb to Beijing's co-optive efforts. 
Foreign owned media organizations and 
those headquartered or with assets 
offshore could also be less susceptible to 
pressure. New television and radio 
channels will soon make the territory's 
electronic media market more 
competitive as well. "What all these add 
up to is growth in pluralism in our 
channels of media communication," Chan 
says, and "pluralism means it is more 
difficult to curtail press freedom." 

Paradoxically, however, this 
increasingly lively communications hub 
sits atop a foundation of less-than-liberal 
colonial laws and a non-democratic, if 



8 UPDATE 



benign government. Hong Kong's British 
rulers have permitted a very significant 
degTec of media freedom, defined in 
terms of an absence of official censorship 
and of government persecution of media. 
Yet, a wide range of ordinances still give 
the government broad authority to do 
such things as ban or edit television 
programmes, prohibit the broadcast of 
false news, censor films deemed 
prejudicial to relations with China, obtain 
search warrants and prohibit public 
entertainment. 

These laws are seldom used. However, 
fearing they could prove formidable 
weapons against the media in the hands 
of a less liberal government after 1997, 
the Hong Kong Journalists Association 
and others have called for government 
action to repeal or amend them before the 
transfer of sovereignty. The government 
is currently reviewing its ordinances for 
compliance with the territory's proposed 
new bill of rights. "We have a sort of 
benevolent dictatorship here now, but 
these laws could be used to severely 
repress the press after 1997," maintains 
Cliff Bale, who covers the Hong Kong- 
Beijing affairs beat for the publicly- 
owned Radio Television Hong Kong. 

Both Bale and Chan point to the 
urgent need for access to information 
legislation to aid journalists' and other 
citizens' efforts to obtain information 
about government policies. 'The media 
can say what it wants about the 
government, but the closed nature of the 
colonial government system means they 
have trouble finding out enough 
information to be able to report 
effectively," Bale argues. Access to 
information legislation will be critical 
after 1997 because Hong Kong's 
government will not be fully accountable 
to citizens through direct elections. 

The Beijing government's actions 
since June 4th have done little to inspire 
confidence in media circles, according to 
Barry Wain. China has curbed Hong 
Kong journalists' access to reporting on 
Mainland affairs through visa restrictions, 
blacklisting individual journalists and 
publications and other controls. It fired 
the publisher, who had sided with the 
students during the democracy movement 
in 1989, of the locally-based but 
Mainland-controlled Wen Wei Po 
newspaper. Furthermore, China has 
openly attacked Hong Kong media for 



spreading rumours about Mainland 
politics and undermining confidence in 
the territory's future. 

"The local press has taken the full 
brunt of what is nothing less than a 
heavy-handed intimidation campaign," 
Wain maintains. "Peking has moved to 
regain control of its own propaganda 
apparatus in Hong Kong while employing 
every tactic from continuing seduction to 
punishment and even dirty tricks to 
convince journalists that there is only one 
way to report - and that is China's way." 

Finding a way to address China's 
legitimate concerns about the territory 
being used to subvert the Beijing 
government, without jeopardizing Hong 
Kong's freedoms and autonomy, will be 
difficult in practice. As Chan maintains, 
"China has a mentality of controlling 
everything. They think that when they 
can control Hong Kong, then 'one 
country, two systems' will work. But 
control is the very thing that will destroy 
Hong Kong." 

In the end, it could be a dollars and 
cents argument that proves most 
persuasive in convincing China and its 
conservative Hong Kong business allies 
to put up with the territory's liberal media 
traditions. Chan and Bale argue that a 
decline in press freedom would not only 
hamper the activities of film making, 
publishing, television production and 
other profitable industries in Hong Kong, 
it would hurt Hong Kong's position as a 
regional financial centre. 



William Overholt, a regional strategist 
with Bankers Trust Securities Research, 
concludes that the "Chinese government 
has moved so far toward a hard line thai 
it is raising legitimate doubts about 
whether freedom of press and opinion 
after 1997 will be adequate to sustain 
information-intensive businesses such as 
regional banking, stockbroking, and 
publishing, and also to sustain a large 
population of the kinds of sensitive, 
opinionated, highly educated individuals 
who are the principal resource of such 
businesses." 

At this point, no other city in the 
region has the combination of good 
facilities and press freedom that would 
allow it to replace Hong Kong's financial 
centre role, but this could change, 
Overholt warned the American Chamber 
of Commerce. "Depending on the attitude 
of Beijing, Hong Kong's long-term 
attractiveness in this area could weaken 
substantially at a time when one can 
imagine possible improvements in 
Singapore or Bangkok. This is a role 
Hong Kong can lose. China will certainly 
be tempted to curb 'slander' and 
'rumours' about China, as Lee Kwan 
Yew currently does in Singapore." 

Reference: Chin-Chuan Lee and Joseph 
Man Chan, Mass Media and Political 
Transition: The Hong Kong Press in 
China's Orbit, will be published by 
Guilford Press, New York in April, 1991. 



Report from Britain 



by Harriet Clompus 
London 



In the past few months, there has been 
litde British press coverage of Hong 
Kong issues, partly because the Gulf 
crisis and the recent British leadership 
election have dominated the media. 
Another factor is that since passage of the 
British Nationality (H.K.) Bill, the Hong 
Kong question is largely seen by the 
Government as setded. 

One effect of the Gulf crisis has been 
the rapprochement between Beijing and 
the West - an objective, Britain has 
actively sought On September 29, 1990, 
the U.K. submitted a proposal at a 
meeting of the European Community's 
Asian Group of Political Directors to 



drop sanctions imposed on China after 
Tiananmen. Indicative of the growing 
relaxation of the prohibition on high level 
contacts, the British Foreign Minister, 
Douglas Hurd, met in October with his 
Chinese counterpart, Qian Qichen in New 
York. 

In early November, a statement was 
issued by the Chinese ambassador to 
Britain, Ji Chaozu, indicating that Hong 
Kong had nothing to fear from 1997. 
Several weeks later on November 19th, 
Tian Zengpei, the Chinese Deputy 
Foreign Minister, arrived in Britain for a 

Britain, cont'd page 11 



UPDATE 9 



Controversy Over UK Nationality Package and Residency Rules 

by Ho-yin Cheung and 
Keung-sing Ho 
Hong Kong 



While the UK Nationality Act refers 
only to the acceptance of 50,000 heads of 
household as emigrants from Hong Kong, 
the British Government originally 
estimated that a total of 225,000 
passports would actually be issued under 
the nationality package. The total would 
include all the spouses and children of the 
primary emigrants. This figure of 
225,000 was first mentioned by British 
Home Secretary, Douglas Hurd, when he 
announced the Right of Abode scheme in 
the House of Commons in December 
1989. Although it has generally been 
accepted by the Hong Kong press, there 
is now growing evidence to doubt such a 
high estimate. 

In November 1990, Dr. Paul Kwong 
Chun-kuen of the Chinese University 
indicated that the actual figures would be 
closer to 158,000 and possibly even 
lower. To arrive at this revised figure, he 
used the 1986 census tabulations that list 
average household size, according to the 
occupation of head of household. The UK 
estimate of 225,000 suggests an average 
Hong Kong family size of 4.5 members, 
considerably higher than the actual 1986 
census figure of 3.8 for those in a higher 
income bracket. As Dr. Kwong 
concluded, "It seems like they just picked 
that number out of the air. It's very easy 
just to talk in terms of 2.5 kids." 

Computer analysis of a 1987 Family 
Planning Association survey of 1,51 1 



women of child-bearing age also 
indicated that those who were better 
educated tend to have fewer children, on 
the average 1.4. The overwhelming 
majority of these women were married to 
professional, well-educated men - to 
whom most of the 50,000 UK passports 
will be issued. Taking account of a 
percentage of bachelors and using the 1 .4 
figure for children, Dr. Kwong estimated 
a more accurate figure of only 150,000 
passports to be issued. 

Canadian and American consulate 
officials have confirmed that this lower 
estimate corresponds to their own figures 
on the average size of Hong Kong 
families emigrating to their countries. 
The Canadian Commission estimates 2.8 
as the average nuclear family size while 
the US consulate uses a figure of 3. 

How the now disputed UK figure of 
225,000 passports was arrived at remains 
unclear. A Home Office spokesman has 
conceded the final number might be less 
than the original estimate which was only 
intended to be a maximum figure. 
Furthermore, British government officials 
in both London and Hong Kong have 
confirmed that the 225,000 estimate was 
only meant to refer to those receiving 
passports in the run up to 1997, and does 
not include the distant future. 

The May 1990 amendment to the UK 
residency rules has also caused potential 
difficulties for those who hold Hong 
Kong British Dependency Territory 



(BDTC) passports. In order to retain their 
residency status in the UK, those who 
hold such passports must now convince 
immigration officers that they are seeking 
admission to Britain for the purpose of 
permanent settlement. Prior to the 
amendment, people who acquired 
indefinite leave to enter or stay in Britain 
were allowed to re-enter the UK as long 
as they had not been away for more than 
two years. Essentially the change in the 
law has meant that Hong Kong people 
who have residency rights in Britain 
cannot retain this status if they return to 
their careers in Hong Kong. 

In May and June of 1990, 570 people, 
who hold BDTC passports and are 
thereby entitled to residency status in the 
UK, entered Britain without difficulty. 
However last June, one Hong Kong 
resident failed to convince British 
immigration officers that he intended to 
settle there. As a result his residency right 
was removed. Last September, Hong 
Kong Executive and Legislative 
Councillors met with Lord Caithness, the 
British Foreign Minister with 
responsibility for Hong Kong, to discuss 
this problem and the stricter requirements 
for settlement in the UK. While Lord 
Caithness claimed the above was an 
exceptional incident, Lady Dunn 
recognized that there was a potentially 
serious problem as it was not possible to 
tell whether this was an isolated incident 
or a trend. 



Applications for British Citizenship 

The application procedures for people 
who may apply for British citizenship are 
now under way, and the process of 
selection will start soon. The application 
date is February 28, 1991. Applications 
are open to people ordinarily resident in 
Hong Kong who hold some form of 
British-connected passport or who as 
holders of certificates of identity, applied 
for naturalization before July 26, 1990. 
Applications are only open to a head of 
family, his or her spouse, and children 
under 1 8 at the time of application; there 
is no provision for parents or for other 
relatives. There are 36,200 places for the 



general occupational class, 13,000 for 
disciplined and sensitive services, and 500 
for entrepreneurs. Eighty-seven per cent 
of places will be dispersed in the first 
phase and the rest at an unspecified later 
date. 

A point system rather like the Canadian 
one for independent immigrants will be 
used, with the following categories and 
maximum number of points: age (200), 
experience (150), education and training 
(150), special circumstances (150), 
proficiency in English (50), connections in 
the UK (50), public or community service 
(50), for a total of 800. In order to make 



sure that the citizenships are allocated 
fairly, 200 points will be deducted from an 
applicant who already holds another 
citizenship. The large number of points to 
be allocated under 'special circumstances' 
is to ensure that people most necessary to 
the running of Hong Kong will stay as 
long as possible. It covers people in 
occupations where there has been 'an 
exceptional propensity' to emigrate (75), 
people who have shown 'exceptional 
merit' (50), or people who have 
committed acts of bravery (25). This is not 
a process for the faint-hearted; the 
application form is 32 pages long. 



10 UPDATE 



Hong Kong Coverage in Beijing 



by Mark Rowswell 
Beijing 



News about Hong Kong that appears in 
the mainland Chinese press tends to consist 
of short reports on how well the local 
economy and cooperation with the 
mainland are progressing. This regular 
trickle of good news was interrupted twice 
during the latter half of 1990, by reports on 
the Hongkong Bank's decision to move its 
domicile to Britain and Beijing's reaction 
to the Hong Kong airport project. Still, the 
reader is left to decipher what the real 
news is between the lines of Chinese press 
reports. 

Hong Kong's economic growth was 
reported to be modest but "healthy by 
world standards" in the wake of a global 
economic slow-down. Closer economic 
ties between Hong Kong and the mainland 
were credited with reducing the negative 
effects of a sluggish US economy on Hong 
Kong exports and aiding the development 
of the mainland's foreign trade. Hong 
Kong businessmen were reported to be 
increasing investment in the mainland now 
that the political and social situation had 
stabilized and the impact of the "June 4th 
incident" was "fading." Hong Kong 
investment has already recovered to pre- 
June 4th levels and accounts for 63% of 
the total value of overseas investment in 



China, according to a China Daily report 

Hong Kong and the mainland have 
been each other's largest trading partners 
since 1985, and the "we need each other" 
theme is often repeated in the Chinese 
press. Deputy Director of the Hong Kong 
and Macao Affairs Office, Chen Baoyin, 
predicted "brighter times ahead" for 
Hong Kong. Chen boasted that China's 
reforms and opening "had become one of 
the major factors which had brought 
about the rapid growth of the Hong Kong 
economy in the 1980's." With China 
providing the base for economic 
development, Hong Kong will become an 
even more important centre of finance, 
trade and communications in the future, 
Chen claimed. 

In a September interview, Jiang Zemin 
spoke highly of Hong Kong's role in 
China's development Hong Kong and 
the mainland "each complement the other 
for the sake of common prosperity." In 
August the State Council issued a set of 
regulations to encourage overseas, Hong 
Kong and Macao Chinese to invest in the 
mainland. These regulations give 
preferential treatment to export-oriented 
and technologically-advanced enterprises, 
allowing them to remit profits and 



Britain, from page 9 

five day visit. He was a last minute 
replacement for the ailing Wan Li, 
Chairmen of the National People's 
Congress. Tian had talks with then Prime 
Minister, Mrs. Thatcher and Lord 
Caithness, the newly appointed Minister 
of State with responsibility for Hong 
Kong. The resignation of Mrs. Thatcher 
one week later on November 23rd 
prompted Sir David Wilson, Governor of 
Hong Kong, to state, "I am quite sure that 
it will not mean any change at all to 
British policy towards Hong Kong." 
Other H.K. news which received 
media coverage in the U.K. was the court 
case of 1 1 1 Vietnamese boat people who, 
Judge Raymond Spears ruled on 
November 12th, had been illegally 
imprisoned for 18 months. They had been 
detained under Section 13d of the 



immigration law dealing with refugees 
entering Hong Kong, a status which none 
of them had claimed. In fact, they had 
never sought to enter Hong Kong but 
only sought assistance to repair their boat 
before continuing their voyage to Japan. 
Instead, the Hong Kong authorities 
destroyed the boat and held them under 
the immigration law despite the fact that 
they refused to apply for asylum in Hong 
Kong. After the hearing, representatives 
of the 1 1 1 left the court as free men but 
were immediately rearrested under 
section 4 of the immigration ordinance 
covering illegal immigration, although 
they never sought to enter H.K. On 
November 13th, a Times leader 
commented that, "This happened not in 
Albania or China but on British soil." It 
criticized Hong Kong's Secretary for 
Security, Alistair Asprey, for his "high 
handed contempt" of due process. 



transfer assets more freely and granting 
autonomy of management. Clearly, 
Beijing hopes that Hong Kong will play 
an important role in investment and 
technology transfer in mainland 
development projects. 

However, Hong Kong's own mega- 
projects are a major concern for Beijing. 
A December article in China Daily, under 
the headline "HK urged not to fund large 
projects," failed to mention the enormous 
(US$16.3 billion) Hong Kong airport 
project, but it was clear that this was 
precisely the source of Beijing's worries. 
The Chinese government has repeatedly 
balked at the cost of this project, 
reiterating that Hong Kong's financial 
reserves should not be drastically 
depleted. The need for a new airport has 
not been questioned, but Beijing insists 
that it must be consulted on such large 
projects, especially as the construction of 
this one will extend beyond 1997. 

The news that the Hongkong and 
Shanghai Banking Corporation had 
decided to move its domicile to Britain 
was reported very briefly in the China 
Daily. This was followed three days later 
with a summary of Chinese Foreign 
Ministry spokesman, Li Zhaoxin's 
remarks, urging the British government 
to "abide by its responsibility in 
safeguarding and maintaining the social 
stability and economic prosperity of 
Hong Kong during the transitional 
period." The Hongkong Bank's move 
was mentioned, but no specific 
recommendations on how the British 
government should act were made. No 
mention of the Hongkong Bank's move 
or of Li Zhaoxin's exhortation was made 
in the People's Daily although his 
comments on other topics were reported. 

Articles on Hong Kong in the English 
language China Daily greatly outnumber 
their counterparts in the Chinese 
language People's Daily. Clearly, this is 
in part due to the "what we think you need 
to know" fashion that news is published in 
China. The China Daily is read by a 
relatively small audience of intellectuals 
and foreigners and can, therefore, afford to 
be more open in its reporting. Still, reports 
in the China Daily are very sketchy when 
compared to their counterparts in the Hong 
Kong press. At best, Chinese readers get 
only half the story and are left to infer and 
imagine the rest 



UPDATE 11 



Statistical Imponderables: 

What we do not know. 

by Diana Lary 
Toronto 

One of the best and most satisfying 
ways to deal with an issue objectively is 
to rely on hard statistical evidence. But 
the desire to be precise may be thwarted 
by statistical imponderables. In some 
instances statistics are not available; in 
others there are only partial statistics or 
ones which cannot be correlated within a 
specific time frame. These imponderables 
present some problems in looking at 
Canada and Hong Kong. Here are some 
examples: 

Immigration applications 

There are several areas of imprecision 
with immigrant applications. 1) The time 
lag between application and decision is 
often so long that it is impossible to make 
accurate correlations between 
applications and landings, which are 
spread over a number of reporting 
periods. 2) It is impossible to tell whether 
all successful immigrant applicants will 
come to Canada. Some people apply 
concurrently as immigrants to more than 
one country; they only decide where to 
go when they have heard the outcome of 
all their applications. One guide is to 
correlate the number of certificates of 
good behaviour issued by the Hong Kong 
Police with the number of applications 
made to foreign representatives in Hong 
Kong, but only the Hong Kong 
government can do this. 3) It is difficult 
to tell how long people will take between 
receiving a visa and departing for Canada 
though not more than one year is 
allowed. These imprecisions make it hard 
to predict the rate of future immigration 
in precise terms. 

Family size 

Immigration applications are made by 
an individual who is then entitled to 
sponsor his or her immediate family 
(spouse and children under 18). 
Estimating the number of dependents is 
difficult since the size of family varies. 
(See Immigration statistics and the 
Cheung/Ho article.) 



Location of immigrants 
in Canada 

Immigrants to Canada declare a 
specific destination within Canada, but 
the declared place of landing gives no 
firm indication as to where people will 
actually settle. There are no barriers to 
movement within the country; once 
people have landed it is up to them where 
they chose to live. Records are not kept 
on where immigrants live after they 
arrive. The next census figures, not due 
until 1992 or 1993, will only reveal 
ethnicity, not place of birth. It is difficult 
to predict the demand for services if it is 
not clear where the people who may need 
them are. It may also run counter to the 
immigration policy of a specific province 
if people who enter the country destined 
for a particular province do not stay 
there. 

Investment from Hong Kong 
in Canada 

One of the anticipated benefits of the 
migration from Hong Kong to Canada is 
investment in this country. Though large 
figures are quoted, they are seldom 
reliable because the process of 
investment is complex and constantly 
shifting. Although the amount of money 
locked in investment funds specifically 
geared to investor immigrants can be 
established at any given point, other 
investments are less clear cut. It is 
impossible to distinguish between long 
and short term investments, between 
money brought in by immigrants for their 
personal or business use, and money 
which is here only as long as the returns 
are good. There are no controls on the 
departure of money. It is also impossible 
to distinguish between investments made 
by non-residents, immigrants and 
Canadian citizens and, thus, to establish 
how much investment can be attributed 
directly to immigration. There is little 
specific significance here to the Hong 
Kong/Canada relationship, since the 
issues discussed relate to standard 
international market transactions. 



Job opportunities for 
immigrants 

Immigrant applicants in the 
independent class are given up to ten 
points for the demand for their 
occupation in Canada. Shifts in the point 
system are noted widely in Hong Kong 
and followed by potential immigrants as 
they make up their mind where to apply. 
However, by the time successful 
applicants arrive in Canada, many 
months or years will have elapsed since 
the time of application, and the 
occupational demand pattern may have 
shifted. At the end of 1989, for example, 
funeral directors got ten points for 
demand, but by the time successful 
applicants arrive, the demand may not be 
there. The immigrant experience is more 
painful if the immigrant has to suffer 
status dislocation alongside the process of 
migration. 

People of Chinese origin 
in Canada 

At the moment, it is difficult to tell the 
size of the Chinese ethnic group in 
Canada. Results of the 1991 census will 
not be available until 1992 or 1993, and 
in a period of heavy immigration from 
Asia, the 1981 statistics no longer give an 
accurate picture. 

If immigration statistics are added to 
the 1981 census figures, it is still not 
possible to produce an accurate figure for 
the Chinese group. Immigrants of 
Chinese origin may come from Hong 
Kong, the PRC, Taiwan and Southeast 
Asian countries, as well as from non- 
Asian sources. The size of the Canadian- 
born population of Chinese ancestry may 
also have changed, but birth and death 
figures are not tabulated by ethnicity. 
Though there are real distinctions 
amongst immigrants, and between them 
and Canadian-born people of Chinese 
descent, visible distinctions are slight. 

Amongst the various categories of 
Chinese, connections are often limited, 
except for special circumstances such as 
the pro-Democracy movement last year. 
Knowledge of common ethnicity is, 
however, significant in certain public 
spheres - the provision of heritage 
language services and of social services 
in one or more dialects of Chinese. It is 
also significant in terms of investment 

next page 



12 UPDATE 



decisions for businesses geared to the 
Chinese community. So far, no means 
has been found of getting round the 
imprecision other than by subjective 
'guesswork'. 

Canadian citizens in Hong Kong 

It is impossible to tell with any degree 
of accuracy how many Canadian citizens 
are living in Hong Kong at any given 
time. Estimates range from as low as 
9,000 to over 30,000. There is no 
requirement for Canadian citizens to 
register at the Commission. Dual citizens 



live in Hong Kong as local citizens. This 
is a common situation; Canadian 
authorities seldom know how many of 
their citizens are in a specific country at 
any given time. Canadians are only 
advised to register at an embassy or 
commission if they are going to be 
'residing abroad for a protracted period, 
or travelling in a disturbed area' (back 
page of passport). Lack of precision 
would only take on real significance if it 
were ever necessary to evacuate 
Canadians from Hong Kong. 



British Ministers with Responsibility 
for Hong Kong 



by Harriet Clompus 
London 

There have been many "reshuffles" 
within the British Government since the 
Joint Declaration with China was signed 
in December, 1984, and it is useful to 
examine these changes as they affect 
Hong Kong. 

Secretary of State for Foreign and 
Commonwealth Affairs 

Sir Geoffrey Howe 
1983-July 1989: 

Sir Geoffrey was Foreign Secretary at 
the time of the signing of the Joint 
Declaration, and he made frequent visits 
to both China and Hong Kong during this 
period. After the Peking Massacre, Sir 
Geoffrey stated in Parliament on June 6, 
1989 that Britain "condemned the 
merciless treatment of peaceful 
demonstrators and deeply deplored the 
use of force to suppress the democratic 
aspirations of the Chinese people." The 
resignation of the Chancellor of the 
Exchequer in July 1989 precipitated a 
cabinet reshuffle, and Sir Geoffrey 
became Deputy Prime Minister. He was 
replaced in the Foreign Office by John 
Major. 

John Major 

July 1989-October 1989: 

During John Major's three-month 
tenure as Foreign Secretary, Parliament 



discussed measures that should be taken 
to protect the interests of the Hong Kong 
people. Various immigration policies 
were proposed, but no final decision was 
reached. Mr. Major did not visit Hong 
Kong. 

Douglas Hurd 
October 1989-present: 

Under Hurd, the Nationality (H.K.) Bill 
was introduced and passed in April 1990. 
On his return from Hong Kong in mid- 
January 1990, Mr. Hurd stated, "We have 
tried to strike a balance which is 
disappointing to almost everyone in Hong 
Kong, but we believe that it is a 
reasonable balance." Since the passing of 
the Nationality Bill, the Foreign 
Secretary has not visited Hong Kong 
although he has had high level talks with 
Chinese officials. 

Minister of State, Foreign and 
Commonwealth Office, with 
responsibility for Hong Kong 

Richard Luce, M.P. 
1984-85 

Timothy Renton, M.P. 
1986-87: 

Mr. Renton made a trip to Hong Kong 
in January 1986 after the publication of a 
Green paper on Hong Kong's future. 



Lord Glenarthur 
1988-89 

Francis Maude, M.P. 
September 1989-August 1990: 

Francis Maude visited Hong Kong in 
April 1 990 to reassure the colony about 
the terms of the Nationality (H.K.) Bill 
and to suggest that several Western allies 
were considering plans to allow more 
Hong Kong people to have 'insurance' 
visas for their countries. This statement, 
designed to allay Hong Kong jitters, 
backfired when many of the countries 
Maude had mentioned, including Canada, 
denied that they had any such policy. 

Lord Caithness 
August 1990-present: 

Lord Caithness has no background in 
foreign affairs and no special knowledge 
of Hong Kong. He visited Hong Kong for 
the first time in September 1990. In a 
Times article (Oct.l, 1990) about the trip, 
entitled "A Minister Adrift in an Ocean 
of Indifference," Bernard Levin 
suggested that although the general 
consensus in Hong Kong was that, "Lord 
Caithness was not as bad as Lord 
Glenarthur," his lack of knowledge was 
profound. "What the betrayed people of 
Hong Kong really made of this 
astonishing Bertie Wooster, apparently 
made of ectoplasm, there is no knowing, 
but the choice of such an insubstantial 
political figure for the political 
overseeing of Hong Kong demonstrates 
with saddening clarity our government's 
indifference to the colony's fate." 

In November 1990, Lord Caithness 
had talks with Tian Zengpei, the Chinese 
Deputy Foreign Minister, on the latter's 
visit to Britain. 



In Future Issues. . . 

Legal Terminology in Chinese 
and English 

Japan and Hong Kong: Trade and 
Investment Trends 

Hong Kong Visa Students in 
Toronto Schools 

European Views of Hong Kong 

The Indian Commmunity of Hong 
Kong: Citizenship After 1997? 



UPDATE 13 



NEWS IN BRIEF 



Five Arrested in Immigration 
Case 

by Janet A. Rubinoff 
Toronto 

On October 31, 1990, the St. John's 
Evening Telegram reported that three 
people had been arrested and charged in 
connection with an alleged immigration 
scam involving Hong Kong residents 
seeking Canadian citizenship. After a 
nine month investigation the RCMP 
arrested two Newfoundland residents, 
Citizenship Judge Eric Noseworthy and 
Jocelyn Saulnier, an immigration 
administrator in the Department of the 
Secretary of State, and Ottawa 
businessman Paul Vai Seng Ho. The 
three were charged with 22 offenses 
including conspiracy, breach of trust, 
bribery, and issuing false documents. The 
preliminary inquiry is scheduled for April 
1 , 1991 and is expected to last up to six 
weeks, according to Colin Flynn, director 
of public prosecutions. 

Two days later in connection with the 
same investigation, two more people, a 
husband and wife who are Hong Kong 
nationals living in Ottawa, were 
arraigned on charges of giving false 
statements to obtain a Canadian passport. 
These offenses are alleged to have 
occurred in St. Johns. A tragic result of 
this case was the sudden death on 
November 3rd of Judge Noseworthy, five 
days after his arrest and release on 
S30.000 bail. He had been charged with 
"accepting commissions and rewards, 
breech of trust, conspiracy and 
possession of property obtained by 
crime." 

According to Superintendent Emerson 
Kaiser, the RCMP "have reliable 
information from Hong Kong that people 
have paid and are willing to pay 
anywhere from S 10,000 to SI 2,000 up to 
as high as $100,000 to get into Canada." 

Hong Kong 1997: dans la gueule du 
Dragon rouge 

Jules Nadeau, with the collaboration of 
Mathieu-Robert Sauve and the 
photography of Luc Sauve 
Quebec/Amerique, 1990 

This is the first serious treatment of 



Hong Kong published in Quebec, and, 
fittingly, it is written by one of the 
Quebecois who knows most about Hong 
Kong, Jules Nadeau. Nadeau has spent a 
considerable amount of time in Hong 
Kong over the past twenty years, and has 
close family connections there. After the 
debacle in Peking in June, 1989, he went 
to Hong Kong and conducted an 
intensive enquiry into the state of the 
territory. He interviewed people from all 
walks of life, and looked at Macao and 
Shenzhen, as well as Hong Kong itself. 
The report of his enquiry reveals a 
generally pessimistic view of the future 
of Hong Kong amongst me people he 
talked to, but it also shows that there is 
still the possibility of less negative 
scenarios. 

Hongkong Bank 

In December, 1990 the Hongkong and 
Shanghai Bank, one of Hong Kong's key 
financial organizations was reorganized 
under a British holding company, 
effectively moving the headquarters of the 
bank to London. The bank's substantial 
Hong Kong assets will remain there, but 
non-Hong Kong assets, including the 
Hongkong Bank of Canada, will come 
under the new London-based Hongkong 
and Shanghai Bank Holdings. The move 
was covered sympathetically in an editorial 
in the Globe and Mail on December 22nd: 
"...only by signalling its ability to rapidly 
decamp can the bank hope to retain the 
confidence of fretful foreign investors..." 
The move is not expected to effect the 
operations of the Hongkong Bank of 
Canada, according to a spokesman (Globe 
and Mail, Dec 18, 1990, B2). 

Hong Kong Government 
Recruitment in North America 

In an effort to maintain the Hong 
Kong civil service at desirable levels, the 
Hong Kong government has for the past 
few years been recruiting in North 
America. In 1990, 154 applications were 
received in Toronto and Vancouver, up 
from 105 the year before. These figures 
compare with 243 (1990) and 107 (1989) 
from the United States. No information is 
available on the success rate of 
applicants. 



Lu Ping 

On November 23rd, 1990, the deputy 
director of the Hong Kong and Macao 
Affairs Office of the State Council in 
Peking was promoted director, replacing 
Ji Pengfei, the 80-ycar old director. Lu 
Ping is said to share the hard-line 
attitudes of Li Peng, the prime minister. 

B.C. Development, from page l 

one-acre Buddhist temple compound 
includes the Main Gracious Hall, where 
most of the activities take place, living 
quarters, a parking lot and the newly 
completed Seven Buddha Mural. Plans 
have been made to construct a new building 
which will include a Meditation Hall, 
teaching facility, library and new offices. 
Temple administrators have asked the Cily 
of Richmond to re-zone part of the 
surrounding farmland for this purpose. 

Construction of the temple began on 
September 25, 1982 when the foundation 
stone was laid by then mayor B.J. Blair. It 
was officially opened on August 3, 1986. 
The project was first initiated by Mr. and 
Mrs. Wang, devout Buddhists, who had 
immigrated to Canada from Hong Kong. 
They donated both the land and the first 
$300,000 towards the building of the 
temple. Additional funds were collected 
from the local Chinese community to cover 
a total cost of about $2.5 million. The 
temple is mainly financed by donations 
from supporters. 

There are four priests at the temple, 
including the main administrator, Reverend 
Cheng-Ming, originally from Mainland 
China. Temple staff includes sixteen 
members who work in the office, kitchen 
and farm. On the weekend, worshippers arc 
provided with vegetarian food prepared in 
the temple kitchens while vegetables from 
the farm are sold. 

Major temple activities centre on prayer 
and the chanting of Buddhist scriptures 
(sutras). There are no set services and 
worshippers can enter any time the temple 
is open to pray in front of the Kuan-Yin 
Bodhisattva or the Buddha of Healing. One 
of the main events sponsored by the temple 
is the yearly Da-Fo-Qi ceremony which is 
held at the end of November. Essentially a 

next page 



14 UPDATE 



meditation, the ceremony includes seven 
parts and lasts for seven days from 5 in the 
morning till 9:30 at night. The object for 
worshippers is to control their physical 
desires and concentrate on the teachings of 
Buddha. Besides religious activities, the 
temple also offers training in Chinese 
culture, such as traditional painting and 
stone-carving. Thus, it functions as both a 
religious and cultural centre for the 
Chinese-Canadian community. 

Not far from the Buddhist temple is the 
major commercial development project, 
Aberdeen Mall, the largest enclosed Asian 
retail centre in North America. Thomas 
Fung, developer of the Mall and the 39-year 
old president of Fairchild Developments 
Ltd., immigrated to Vancouver from Hong 
Kong with his family in 1984. Prior to his 
immigration, Mr Fung attended high school 
in Vancouver as well as the University of 
British Columbia. Aberdeen Mall is his 
ninth real estate investment project in 
Vancouver. 

Named after the Aberdeen tourist district 
on Hong Kong Island, the Mall has two 
levels and covers a total of 1 1 ,000 square 
metres. Total cost was approximately $20 
million. When it was officially opened June 
30, 1990, 95% of the retail space (over 40 
shops) had been leased. They include 
fashion boutiques, groceries, restaurants, 
bowling alley and a number of businesses 
(electronic equipment, furniture, stationery 
and book stores where the HK South China 
Morning Post is available, Chinese cinema, 
and even a traditional herbal tea house) that 
cater to an Asian clientele. The developer 
attributes the success of the mall to a 
"strong pent-up demand in the Asian 
community." Mr. Fung wants the mall to be 
a lively place especially in the evenings, to 
replicate the busy night life of Hong Kong. 
To this end, all stores must remain open to 
at least 7:30pm from Sunday to Wednesday 
and until 9:30pm from Thursday to 
Saturday. 




B.C. Buddhist temple compound 



Canada/HK Project: 

First Workshop Held 

The first workshop of the Canada and 
Hong Kong Project was successfully held 
at Brock University on Saturday, January 
5, 1991. Convened by Prof. Charles 
Burton of the Department of Political 
Science at Brock, the workshop focused 
on Politics and Society in Hong Kong up 
to and after 1997, and included papers on 
religion, education, and labour unions. 
Papers were presented by Thomas Leung, 
Regent College, Vancouver, on "The 
Crisis and Transformation of the Role of 
Hong Kong Religious Organizations 
Before and After 1997;" Bernard Luk, 
Chinese University of Hong Kong, 
School of Education and visiting scholar 
at Victoria College, University of 
Toronto, on "Education in Hong Kong 
Up to 1997 and Beyond;" and Ming 
Chan, University of Hong Kong, 
Department of History, "Forever Under 
China's Shadow: Historical Perspectives 
on the Realpolitik of Hong Kong Labour 
Unionism Toward 1997." 

The papers will be published by the 
Joint Centre for Asia Pacific Studies in 
the late spring as part of our new Canada 
and Hong Kong series. The next 
workshop, on legal issues involved in the 
return of Hong Kong to China, will be 
held this June in Hong Kong. It will 
coincide with the "Festival of Canada," 
sponsored by the Canadian Commission. 
The convenor of the workshop is Prof. 
William Angus, Faculty of Law, York 
University. 

A unique feature of the mall is the 
Chinese herbal tea house, called Fook Po 
Tong - meaning "Bringing Good Luck and 
Prosperity." Financed by real estate agent 
Willie Chan and two brothers, Patrick and 
Peter Chan, it is the first traditional tea 
house established in 
Canada. The Chan 
brothers, who immigrated 
from Hong Kong only a 
year ago, are the fourth 
generation of a well-known 
tea house in Hong Kong. 
Although the business is 
primarily for the local 
Chinese community, the 
Chans also "hope to sell 
the idea to Canadians as a 
natural health food." 



Hong Kong Institute for 
Asia Pacific Studies 

The Chinese University 
of Hong Kong 

The Institute was established in 
September 1990 to promote multi- 
disciplinary social science research on 
social, political and economic 
development. The Institute's research 
emphasis is on the role of Hong Kong in 
the Asia-Pacific Region. The director is 
Dr. Yeung Yue-man, and the associate 
director Dr. Lau Siu-kai. The current 
research projects directly related to 
Hong Kong are: Hong Kong and Asia- 
Pacific Economies, directed by Dr. Liu 
Pak-wai and Dr. Wong Yue-chim; 
Political Development of Hong Kong, 
directed by Dr. Lau Siu-kai; and Social 
Indicators and Social Development of 
Hong Kong, directed by Lai Siu-kai. 
There is an Information and 
Documentation Unit, headed by Dr. 
Maurice Brosseau. 
The address is: 

Chinese University of Hong Kong, 

Shatin, N.T., Hong Kong. 

Oxford Hong Kong Project 

The Hong Kong Project at the Centre 
for Modem Chinese Studies, Oxford 
University, was set up in 1986, 
sponsored jointly by the Rhodes House 
Library. Its aim is to secure research 
materials on Hong Kong and promote 
research and better understanding of 
Hong Kong. One of its prime tasks is to 
collect the private papers of retired civil 
servants, and to conduct interviews with 
them and with other people who have 
made major contributions to modern 
Hong Kong. More than 50 people have 
already been interviewed. The 
interviews are transcribed and then 
deposited in the Rhodes House Library. 
If no specific restrictions are imposed by 
the interviewee, the transcripts will be 
released for scholarly research thirty 
years after the last event discussed in the 
transcript. 
Director: 

Dr. Steven Tsang 
Address: 

Centre for Modern Chinese Studies 

57, Woodstock Road 

Oxford OX2 6JF 



UPDATE 15 



The Canada and Hong Kong Update 

is distributed free. Please call or write to 

us if you are not on our mailing list. Past 

issues are available on request 

(416)736-5784 



Canada and Hong Kong Project 

Joint Centre for Asia Pacific Studies 

Administrative Studies Building, 

Suite 200K 

York University 

4700 Keele Street 

North York, Ontario 

CANADA M3J 1P3 



16 UPDATE 



5. 



CANADA AND HONG KONG UPDATE 



Number 4 



SPRING 1991 



Prime Minister's Visit to Hong Kong 



Prime Minister Mulroney visited Hong 
Kong from May 22-26, to launch the 
Festival of Canada. At a dinner on May 24, 
given by the governor, Sir David Wilson, 
the PM talked about the importance of 
Hong Kong to Canada. "People from Hong 
Kong have settled throughout Canada; it is 
a rare town that has no families of Chinese 
origin. And these families have brought the 
same qualities of enterprise, energy and 
self-reliance to their communities in 
Canada that have made such a contribution 
to economic and cultural life here. With 
more than 28,000 more immigrants this 
past year from Hong Kong and with further 
immigrants still to come in future years, the 
Hong Kong thread in the Canadian national 
tapestry is becoming brighter and stronger 
and more mutually rewarding." 

He underlined Canada's intention to 
treat Hong Kong as a distinct political 
entity. At the dinner he said: "As we end 
this century, the name Hong Kong takes on 
a new meaning. Hong Kong becomes 
synonymous with autonomy and with the 
co-existence of two social systems. Canada 
wants to see Hong Kong's constitutional 
development and democratic institutions 
grow to match your economic enterprise 
and your truly impressive achievements. 

"Canada values its relationship with 
Hong Kong. We believe that it is in 
everyone's best interest that it continue and 



prosper long into the next century and 
beyond. You can count on Canada's 
friendship and support throughout this 
delicate and challenging period." The fact 
that the PM's visit to Asia did not include a 
trip to China underscored this sense of 
Hong Kong's autonomy. 

His visit also stressed past ties; with Sir 
David he visited the war memorial for 
Canadian soldiers killed during the 
Japanese occupation of Hong Kong and 
reaffirmed present and future Canadian 
commitment to Hong Kong. 

In a speech to the Canadian Chamber of 
Commerce on May 24, the Prime Minister 
talked about the growing trade between 
Hong Kong and Canada: "the economic 
links between our societies continue to 
expand and deepen. The numbers tell the 
story. Our two-way merchandise trade in 
1990 was over $1.7 billion (Canadian). 
Canadian exports to Hong Kong have 
almost doubled in the last five years. In 
1990, Hong Kong was our fifth most 
important trading partner in the Asia- 
Pacific region. Billions of dollars of 
investment from Hong Kong are 
contributing to the dynamism of both our 
economy and yours 

"Trade with Asia is crucial to Canada's 
future. Canada trades more with Asia than 
it does with Western Europe. Our two-way 
merchandise trade with this region hit 



S33.5 billion in 1990, and through the 
'80's, that trade grew at a pace which 
exceeded that with any other part of the 
world. Canada's past has been largely an 
Atlantic past. Canada's future will be 
increasingly a Pacific future. We want 
Hong Kong to play a major role in that 
future. 

"Canada's partnership with Hong Kong 
goes far beyond trade. I want to assure you 
today of Canada's support as you meet the 
challenges of the years ahead. Canada 
endorses the autonomy preserved for Hong 
Kong by the Joint Declaration, particularly 
in areas of trade, economy and law. That 
autonomy is essential to Hong Kong's 
prosperity. And, as important, Canada 
believes that the autonomy of Hong Kong 
is essential for the prosperity of this entire 
region, including China itself." 

On May 23, after a visit with a group of 
Vietnamese boat people about to leave for 
Canada, the Prime Minister said, in a 
spontaneous gesture of compassion, that 
Canada would take more refugees and, 
thus, help to reduce the scale of the world 
refugee problem: "if you take more than 
your share, not less, you eventually 
alleviate the human suffering." However, 
he made no commitment of the kind hoped 
for by many Hong Kong people to increase 
the scale of Hong Kong immigration to 
Canada. 



IN THIS ISSUE: 

Prime Minister's Visit to Hong Kong 1 

Guarantees of Human Rights 2 

Hong Kong Veterans 3 

PADS - Further Development 3 

per 

F1029.5 

H6 C36 



Response to UK Nationality 

Package 3 

Beijing Update on Hong Kong 4 

Immigrant Demographics 5 

Macau's Transition to Chinese Rule 8 

Indians of Hong Kong 9 



Associations 11 

Support for Hong Kong in the UK 14 

Winnipeg Hosts First National Meeting 

of Chinese Canadians Since '75 15 

Conference on Human Rights & 

Democracy in China 16 



CANADA AND 

HONG KONG UPDATE 



Editor; Diana Lary 

Janet A. Rubinoff 

Illustration & Design 

IMS Creative Communications 

Contributors Philip Calvert 
Ho-yin Cheung 
Harriet Clompus 
Stephanie Gould 
Susan Henders 
Keung-sing Ho 
Mark Rowswell 
Hugh Xiaobing Tan 
Irene Tong 

Canada and Hong Kong Update is 
published three times a year by the 
Canada and Hong Kong Project, 
Joint Centre for Asia Pacific Studies, 
Suite 200K, Administrative Studies Bldg. 
York University, 4700 Keele St., 
North York, Ontario, 
CANADA M3J 1P3 

Telephone: (416) 736-5784 
Fax:(416)736-5687 

Opinions expressed in this newsjoumal 
are those of the author alone. 



CANADA AND HONG KONG PROJECT 

Director Diana Lary 

Coordinator Janet A. Rubinoff 

Advisory Board David Bond 
Denise Chong 
Maurice Copithome 
Dr. Bemie Frolic 
John Higginbotham 
Graeme McDonald 
Dr. T.G. McGee 
Jules Nadeau 
Dr. William Saywell 
Dr. Wang Gungwu 

We want to thank the Dormer Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 



This publication is free. 

Please call or write to us for past 

or future issues. 



Festival of Canada in Hong Kong 



The Festival of Canada was launched by 
Prime Minister Mulroney on May 24th. The 
heart of the Festival will start on June 19th, 
and will be officially opened by the 
governor of Hong Kong, Sir David Wilson. 
Altogether fifty events have been arranged 
on the theme of "Canada and Hong Kong: 
Friends Yesterday, Today and Tomorrow." 

There are several strands to the Festival 
programme: in the cultural area, there will 
be performances by Les Grands Ballets 
Canadiens, Jean-Paul Sevilla^ Margie Gillis, 
Mimeworks and Ofra Harnoy.jThere will 
also be a film festival, including the Hong 
Kong premier of Bethune: The Making of a 
Hero. The business programme will be 



highlighted by trade promotions and 
meetings of Canadian business associations 
from all over Asia. There will be showcases 
on tourism, industry and technology, and 
the environment. On the academic side, 
there will be two legal events, both held at 
the University of Hong Kong. One will be a 
conference on the Bill of Rights, the second 
a workshop on a series of specialized legal 
issues. 

The Festival will finish with a picnic on 
June 30th, the day before Canada Day. On 
Canada Day itself there will be a gala 
reception, and a totem pole, given by the 
government of Canada to the people of Hong 
Kong, will be erected in Kowloon Park. 



Guarantees of Human Rights in Hong Kong 



• The United Nations Human Rights 
Committee meets several times a year to 
hear reports from signatories of the 
International Covenant on Civil and 
Political Rights. (Eighty countries are 
signatories of the Covenant; China is one of 
the few countries which has not signed.) 
Signatories are bound to implement the 
rights listed in the Covenant and must report 
every four years to the Committee. Hong 
Kong has been covered under the Covenant 
since 1976 when the British government 
ratified it. Article 156 of the Joint 
Declaration guarantees the continuation of 
the Covenant after 1997: "the International 
Covenant on Civil and Political Rights will 
remain in force." The Hong Kong Bill of 
Rights, soon to become law, is based word 
for word on the Covenant. 

On April 1, 1991, United Kingdom 
representatives were called to answer 
questions on the periodic report from Britain, 
which included a section on Hong Kong. The 
UK government sent a five person team 
principally to answer questions about 
Northern Ireland; a second five -man group 
was sent from the Hong Kong government. 
The team was led by Solicitor General Frank 
Stock, who was accompanied by the 
Assistant Solicitor, General Philip Dykes, 
and three principal assistant secretaries. 

The Human Rights Committee members 
asked a number of questions about the 
enforcement of the Covenant in Hong Kong 
after 1997, given that China has not signed it. 
The UK delegation was asked about 



"measures regarding the protection of human 
rights of citizens of Hong Kong after the 
territory is handed over to China in 1997." 
The Committee wanted to know what Britain 
would do to ensure compliance after 1997. 
The United Kingdom was asked if it would be 
willing to sign the Optional Protocol, which 
would allow people suffering human rights 
abuses to complain to the Committee directly. 
(Canada has signed this protocol; it is used 
quite often by native people. The UK has not). 

The Committee requested another report 
on the situation in Hong Kong in two years, 
instead of the normal four. At the end of the 
meeting, the UK government was asked by 
the Committee to ensure that irreversible 
human rights statutes be put in place in Hong 
Kong before the territory's transfer to China 
in 1997. The Committee made it clear that it 
considered the UK responsible for ensuring 
that the people of Hong Kong not be exposed 
to abuses in the future. 

After their stay in New York, Mr. Stock 
and Mr. Dykes visited Ottawa on April 4th 
and met people involved with human rights 
issues in Canada, including Justice Strayer, 
who helped in preparing Hong Kong's Bill 
of Rights. Mr Dykes then came to Toronto 
for a visit to the Ontario Human Rights 
Commission. Canada is the only country 
with a common law system to have 
developed legislation and administrative 
procedures for the protection of human 
rights, and this experience may be useful to 
Hong Kong in the future. 



2 UPDATE 



PADS: Further Developments 



Hong Kong's Port and Airport 
Development Project continues to be a 
focal point of concern for both parties 
involved, as well as an indicator of some of 
Peking's attitudes towards its relationship 
with the territory as 1997 approaches. 
While negotiations on the project are still 
taking place, all indications are that the 
project itself will be scaled down if it is to 
obtain the approval of the Chinese 
government - approval which is needed for 
private sector support of the project. 

In January of this year, after some initial 
negotiations in the fall of 1990, Hong Kong 
and Chinese officials met for further 
discussions on PADS. During the course of 
these discussions, the Chinese side stated 
that Peking had to be consulted on all 
matters which straddle 1997. The Hong 
Kong side reacted firmly to what seemed to 
be a move towards veto power over major 
policy decisions before 1997, and Peking's 
position was rejected. 

By early March, however, it appeared 
that the Hong Kong government was 
willing to reconsider the phasing of 
financing for the project and to have Peking 
representation in its development. 
However, no progress was made during the 
visit of British Foreign Secretary Douglas 
Hurd to Peking in April, and the airport 



project now seems to be stalled. Meetings 
between officials from Britain, Hong Kong 
and China, which, it had been hoped, would 
break the deadlock, ended inconclusively in 
Peking on May 22. 

Peking continues to express concern that 
the Hong Kong Special Administrative 
Region will have adequate fiscal reserves in 
1997, arguing that the projects being 
planned could leave as little as HKS5 
billion in the reserves. Hong Kong 
estimates that the figure will be closer to 
S30 billion, as compared with present 
levels of $72 billion. Peking has asked 
Hong Kong to set aside a substantial 
portion of the fiscal reserves for 
management of the new SAR after 1997. 

The issue is as much political as fiscal. 
Peking wants a say in a project which will 
not only have downstream benefits to the 
region but also great costs. Peking also 
seems to be putting an interventionist 
definition to the clause of the 1984 Joint 
Declaration which allowed for "increased 
consultation" in the latter part of the 
countdown to 1997. Peking's interpretation 
of "consultation" goes well beyond that of 
the Hong Kong Government. The final 
definition agreed on will have great 
influence over the evolution of Hong Kong 
in the next six years. 



Hong Kong Veterans 



A highlight of Prime Minister 
Mulroney's visit to Tokyo came on May 
28, when Japanese Prime Minister Kaifu 
made a formal apology for the 
maltreatment of Canadian prisoners of war 
in Hong Kong and Japan during the Second 
World War. He apologised for the 
"unbearable suffering and pain that were 
caused by the Japanese state against the 
Canadian people who experienced such 
sufferings." Almost fifty years ago, 1,975 
Canadians were taken prisoner by Japanese 



forces who took Hong Kong on Christmas 
Day, 1941. Five-hundred and fifty -seven 
died during the War; seven-hundred are still 
alive today. Spokesmen for the survivors 
reacted negatively to the Japanese apology. 
Clifford Chatterton, CEO of the War 
Amputations of Canada, said that an 
apology without compensation was an 
insult. The survivors filed a claim against 
the Japanese government for reparations 
with the United Nations Human Rights 
Committee in February of this year. 



Poor Response to UK 
Nationality Package 

by llo-yin Cheung and 
Keung-sing Ho 
Hong Kong 

The poor response to the controversial 
British nationality package, which provides 
right of abode to qualified Hong Kong 
people, was unanticipated. At the end of the 
three month application period on February 
28, the total number of forms received was 
only 65,674. This figure was far lower than 
the 300,000 predicted by Hong Kong 
Government officials. Initial processing 
indicated that there were about 48,380 
applications under the general occupation 
class, which provides places for 32300 
households in this first round. (A second 
round is to begin after 1993.) Only 7,750 
forms have been received from people in 
the Government's disciplined services 
class, which had been allotted 6,100 places. 
A further 1,500 applications were made 
under the sensitive service class, which 
provides for a total of 6,300 households. Of 
the 500 places in the entrepreneur class, 
reserved for those invited by the Governor, 
just 200 were received. Separate quotas 
cannot be transferred from undersubscribed 
classes to oversubscribed. Altogether, only 
one-tenth of those targeted by the scheme 
had submitted an application. 

The British Home Office declined to 
give any reasons for the poor response to 
the right of abode plan, while the Director 
of Administration of the territory, Donald 
Tsang Yam-kuen, insisted that the British 
nationality scheme has already been a 
success. The administration has rejected 
criticism directed against both the abode 
plan and its failure to adequately publicize 
the scheme. 

The unexpected poor response is 
attributed to a number of factors. One 
obvious factor is the very length and 
complexity of the application form which is 
32 pages long [see Canada and Hong Kong 
Update, Winter 1991: 10]. The reference 
manual for the form is over 250 pages. In 
many cases it would be difficult to prepare 
the application without special expertise or 
legal advice. Although officials may feel 
the lengthy form is clear and 
comprehensive, most members of the 

UK Package, cont'd page 4 



UPDATE 3 



UK Package, from page 3 

public have found it very complicated and 
also too limited in its scope. Many simply 
did not apply because they thought they 
would not qualify. 

A second factor is the Government's 
failure to sufficiently publicize the scheme. 
One of the main reasons for this low profile 
promotion was the sensitivity of the Hong 
Kong Government to Beijing's antagonism 
to the plan. Since Parliament's passage of 
the Nationality Package in October 1990, 
Chinese officials have opposed the 
provision of an "insurance plan" for highly 
qualified administrative and business 
people to leave the territory. 

A third reason is the perception of Hong 
Kong people that the abode plan merely 
offered a "travel document" rather than 
citizenship. Since only 50,000 heads of 
households were to receive passports, many 
people believed they had little chance of 
success. That fact coupled with the limited 
focus of the abode scheme on professional 
and managerial elites discouraged many 
people from applying for migration to 
Britain. At the same time, according to 
Michael Davis, law lecturer at the Chinese 
University, there is considerable resentment 
among Hong Kong people that they must 
now "apply for something that should 
already be theirs." Many of these 
professionals or their parents previously 
held British Hong Kong Territory passports 



that guaranteed a right of abode before Britain 
recently changed the law [Far Eastern 
Economic Review, April 18, 1991: 20]. 

In Britain, the Labour Party's home 
affairs spokesman, Mr. Alistair Darling, 
maintained that the low number of 
applications indicated growing confidence 
in Hong Kong. He suggested that recent 
tough Chinese statements on the future of 
the territory were only diplomatic rhetoric. 
However, the fact that the rate of migration 
out of Hong Kong is one every six minutes 
at Hong Kong International Airport belies 
this optimistic assessment. More 
importantly, the preferred destinations for 
Hong Kong migrants are Canada, Australia 
and the United States, which are perceived 
to have more vital economies and greater 
opportunities than Great Britain. This 
perception has also contributed to the poor 
response to the UK Nationality Package. 

As Liberal Democrat foreign affairs 
spokesman, David Steel, concluded, "The 
UK is not as attractive a location as Her 
Majesty's Government thought." One 
troubling implication of Britain's 
embarrassment over the poor return is that 
MP's and other government officials are 
likely to assume that the problem of Hong 
Kong is no longer a pressing issue and that 
the crisis of confidence of Hong Kong 
people has dissipated [South China 
Morning Post, March 1, 1991: 7]. 



Fearful Fours 



There is a belief in some circles, much 
stressed in some of the recent 
commentaries on Hong Kong immigration, 
that no person of Chinese ethnicity will 
ever buy a house with a 4 in its number. 
('Four' is a homonym of the word 'death'; 
it is also a homonym of 'silk', 'private' and 
'thought'). This belief recently led some 
residents of Metro Toronto to make a 
formal request to the North York Council 
to allow applications to delete the numeral 
four from a house number "where proven 
hardship exists with respect to the sale of a 
property due to its existing number" 
{Minutes of the Meeting of North York 



Council, February 20, 1991). The proposers 
are non-Chinese people who are 
considering selling their houses, and 
believe that having a four in the number of 
their house will make it impossible for 
them to sell to a Chinese buyer. The request 
was denied by Council by a vote of 14 to 1. 
North York Mayor Mel Lastman, well- 
known for his pithy comments, described 
the request as "the stupidest thing I have 
ever heard of." The request was also 
opposed by the Toronto chapter of the 
Chinese Canadian Council; a spokeswoman 
said that the superstition about four was 
held by only a small number of Chinese. 



Beijing Update on 
Hong Kong 

by Mark Rowswell 
Beijing 



In early 1991 news about Hong Kong in 
the Chinese press increased in frequency, 
reaching a peak during British Foreign 
Secretary Douglas Hurd's visit to China in 
early April. Despite the increase, however, 
there remained little of substance in reports 
on Hong Kong. 

The frequency of news reports 
corresponded to a relative flurry of diplomatic 
activity between Chinese, Hong Kong and 
British officials and businessmea In early 
January the second round of talks between 
Chinese and British experts on large-scale 
capital construction in Hong Kong was held 
in Beijing. (The first round took place last 
October.) At the same time, Chinese 
President Yang Shangkun met with a 
delegation from the Hong Kong Chinese 
General Chamber of Commerce. Another 
high-level economic mission, headed by the 
executive director of the Hong Kong Trade 
Development Council, Jack So, arrived in 
Beijing for the opening of a trade exhibition 
in April. In late January Hong Kong 
Governor Sir David Wilson met in Beijing 
with Chinese Premier Li Peng, the director of 
the Hong Kong and Macao Affairs Office, Lu 
Ping, and former director Ji Pengfei. Six 
weeks later Lu and Ji held meetings with Sir 
David in Hong Kong and again the following 
month, in early April. British Foreign 
Secretary Douglas Hurd met with top Chinese 
officials in Beijing. 

Despite all this activity, nothing 
substantial seems to have happened judging 
from the Chinese news reports. Results of the 
meetings and British views rarely are 
reported. News articles mainly relay the 
concerns expressed by the Chinese side, 
making for very monotonous reading. 

Central to this diplomatic activity is the 
new Hong Kong airport scheme, often 
referred to under the broader terms "large 
scale capital construction" or "large 
infrastructure projects." The Chinese 
repeatedly stressed that such projects "have 
created concern among Hong Kong residents 
who fear the projects, which were 
haphazardly drawn up, will require too much 
capital" and will "add burdens to Hong Kong 
and its taxpayers." In January Li Peng 



4 UPDATE 



suggested it was possible to have a smaller 
investment but higher economic efficiency 
and added that "the Chinese side docs not 
seek any selfish interest in this matter." 

The Chinese have emphasized the need 
for a cooperative relationship with British 
authorities. In February the director of the 
Hong Kong branch of the Xinhua News 
Agency, Zhou Nan, stated that the Chinese 
government has "no intention of interfering in 
the purely administrative affairs of Hong 
Kong before 1997, but was duty bound to 
look into important matters that straddle 1997 
and on which the future government of the 
Hong Kong Special Administrative Region 
will bear responsibilities and commitments." 
During Douglas Hurd's visit, the Chinese 
Foreign Minister, Qian Qichen, remarked that 
"there is no such thing as China maintaining 
control or veto power" over such matters. 
Communist Party General Secretary Jiang 
Zemin said that China and Britain are "in the 
same boat" and should work closely together. 

Considerable emphasis is placed on the 
Basic Law, which was claimed to have 
already begun to play a guiding role in 
handling Hong Kong affairs, although the law 
does not come into effect until July 1, 1997. 
A front page editorial commemorating the 
first anniversary of the law appeared in the 
Peoples Daily on April 4. On April 15, a long 
editorial in China Daily summed up Douglas 
Hurd's visit, repeated Chinese concerns about 
Hong Kong and stressed the role of the Basic 
Law. The article quoted from an editorial in 
Ta Gong Poo which compared Hong Kong to 
a running train, the Basic Law having laid 
down a new track on which it would run. The 
conclusion was that "unless the train heads 
for the beginning of the new track now, it 
might go off the rails and overturn." 

Douglas Hurd's comments to Li Peng 
expressing the hope that "with your [Li's] help 
this visit may mark a step forward in giving 
greater practical content to cooperation 
between our two countries" seems to have 
been in vain, at least for the time being. The 
same article that reported this comment added, 
"a Chinese Foreign Ministry spokesman did 
not elaborate on the outcome of their 
discussion or the Hong Kong airport issue - 
besides quoting Premier Li Peng as saying that 
China has adopted a 'cooperative attitude' on 
the issue of Hong Kong's new airport." It 
seems clear that the Chinese are not as 
interested in resolving concrete matters such as 
the airport plan as they are in using such issues 
to define the role China plays in Hong Kong 
during these final years of British rule. 



Immigrant Demographics, 1990 



by Diana Lary 
Toronto 



The number of immigrants from Hong 
Kong landed in 1990 was 28,949, a rise of 
45% over 1989 and 24% over 1988. The 
change in numbers did not have any major 
effect on the demographic characteristics of 
the immigrants. Some changes are apparent, 
in terms of language knowledge and levels 
of education, but these are slight shifts 
rather than dramatic alterations. 

Principal immigrants/dependents 

Over the past three years, the number of 
principal immigrants has been declining 
slowly as a proportion of all immigrants, 
while the number of dependents has risen. 



1988 1989 1990 

Single 10914 9603 14269 

Married 11645 9656 13837 

Widowed 503 437 613 

Divorced 168 118 177 

Separated 51 47 53 

Total 23281 19861 28949 



Ages 

The age range of immigrants over the 
past three years has shown little change. 
The majority continue to be in the most 
productive years: 50% of immigrants in 
1988 were between 25 and 44, 48% in 1989 





1988 


% 


1989 


% 


1990 


% 


Principal 


10353 


(44.5) 


8407 


(42.3) 


11169 


(38.6%) 


Spouse 


5400 


(23.2) 


4359 


(21.9) 


6449 


(22.8%) 


Dependents 


7528 


(32.3) 


7083 


(35.7) 


11304 


(39.0%) 


Total 


23281 




19861 




28949 





Male/female ratios 

Male/female ratios have remained 
constant: in 1990 the ratio was 52%:48%; in 
1989 it was 59%:49%. The percentage of 
female principal immigrants remains high, 
though at 34% (1990) it is well below the 
41% for 1988 and 43% for 1989. The 
number of sponsored husbands declined in 
parallel from 10.23% in 1988 to 10% in 
1989 and to 7.2% in 1990. 

Total Male Female 

1988 11142 12139 

1989 9396 10465 

1990 14159 14790 



Marital status 

The number of married immigrants 
declined slightly in 1990: 47.8% were 
married, as opposed to 50% in 1988 and 
48.6% in 1989. These changes are too small 
to suggest a major change away from the 
predominantly family migration. 



and 49.4% in 1990. Other age groups show 
equally minor fluctuations. Children made 
up 22% of the group in 1988, 20% in 1989 
and 22% in 1990. Young people accounted 
for 12% in 1988, 13.9% in 1989 and 1 1.8% 
in 1990. Middle-aged people made up 
12.5% of the 1988 intake, 13.7% of 1989 
and 12.3% of 1990. The retired group has 
grown slightly, from 3% in 1988, to 3.5% in 
1989, to 4% in 1990. 

0-14 15-24 25-44 45-64 65+ 

1988 5126 2825 11686 2911 733 

1989 4132 2769 9532 2723 705 

1990 6478 3432 14303 3565 1171 

Language abilities 

Over half of Hong Kong immigrants 
who landed in 1988 and 1989 spoke 
English; in 1990 the figure dipped slightly 
to 49%. In the category of principal 
immigrants the percentages were higher 
(77.1% in 1988, 70.8% in 1989, 68.8% in 
1990). There has been a gradual decline 
over the past three years in the proportion of 
English speakers. There is a similar decline 
in the proportion of French speakers 
(unilingual or bilingual) from 0.63% in 
1988, to 0.51% in 1989 and 0.37% in 1990. 



Immigrant Demographics, cont'd page 6 



UPDATE 5 



Immigrant Demographics, frorr 


page 5 
























Mother 


Principal immigrants: 


education levels 








English 


-rench 


Bilingual tongue 




1988 


% 


1989 


% 


1990 


% 


1988 








None 


384 


(3.7) 


272 


(3.2) 


444 


(3.9) 


Principal 


7984 


49 


66 2254 


Secondary or less 


3119 


(30.1) 


3331 


(39.7) 


4637 


(41.5) 


Spouse 


3374 


6 


18 2202 


Trade certificate 


2255 


(21.8) 


1728 


(20.6) 


2039 


(17.4) 


Dependent 


1718 


1 


7 5802 


Non-university 


1354 


(13.1) 


986 


(11.7) 


1199 


(10.7) 


Total 


13076 


56 


91 10058 


Univ. non-degree 


371 


(3.6) 


402 


(4.8) 


453 


(4.0) 


% 


(56.2) 


(0.24) 


(0.39) (43.2) 


B.A. 


2137 


(20.6) 


1231 


(14.7) 


1686 


(15.1) 










Some post-grad 


127 


(1.2) 


89 


(1.1) 


106 


(0.9) 


1989 








M.A. 


579 


(5.6) 


338 


(4.0) 


459 


(4.1) 


Principal 


5954 


21 


57 2375 


Ph.D. 


26 


(0.3) 


23 


(0.3) 


31 


(0.3) 


Spouse 


2366 


3 


11 1979 


Non known 


1 




7 




116 


(1.0) 


Dependent 


1905 


2 


7 5169 


Total 


10353 




8407 




11169 




Not stated 


8 





4 
















Total 


10233 


26 


75 9527 


Spouses: education levels 










% 


(51.5) 


(0.13) 


(0.38) (47.9) 


None 


203 


(3.8) 


156 


(3.6) 


6 


(4.3) 










Secondary or less 


2916 


(54.0) 


2647 


(60.7) 


3979 


(61.7) 


1990 








Trade certificate 


921 


(17.1) 


639 


(14.7) 


958 


(14.8) 


Principal 


7687 


2 


71 3407 


Non-university 


576 


(10.7) 


376 


(8.6) 


514 


(7.9) 


Spouse 


3524 





15 2909 


Univ. non-degree 


70 


(1.3) 


81 


(1.9) 


115 


(1.8) 


Dependent 


3064 


6 


12 8222 


B.A. 


522 


(9.7) 


347 


(7.9) 


464 


(7.2) 


Not stated 


22 





5 


Some post-grad 


58 


(1.1) 


27 


(0.6) 


33 


(0.5) 


Total 


14297 


8 


98 14543 


M.A. 


122 


(2.3) 


78 


(1.8) 


79 


(1.2) 


% 


(49.3) 


(0.03) 


(0.34) (50.2) 


Ph.D 

Not known 
Total 


12 



5400 


(0.2) 


8 



4359 


(0.2) 


6 

25 
6449 


(0.09) 


Educational levels 




















There has been a slight decline 


in the educational levels of 


Dependents: educational level} 










immigrants over 


he period 1988-1990, caused perhaps by a rise in 


None 


2073 


(27.5) 


1600 


(22.6) 


2703 


(23.9) 


the proportion of 


people coming in under the family class. This 


Secondary or less 


5028 


(66.8) 


4692 


(66.3) 


7107 


(62.8) 


decline does not effect the fact that this is a 


highly educated group 


Trade certificate 


106 




160 




314 




of immigrants. 








Non-university 
Univ. no degree 


44 
262 




95 
335 




184 
418 






1988 % 


1989 


% 1990 % 


B.A. 


6 




160 




390 




None 


2660 (11.4) 


2031 


(10.2) 3423 (11.8) 


Post-grad 


7 




7 




29 




Secondary or less 1 1063 (47.5) 


10672 


(53.8) 15723 (54.4) 


Master 


1 




29 




72 




Trade certificate 


3282 (14.1) 


2527 


(12.7) 3311 (11.4) 


Ph.D 







1 




84 




Non-university 


1974 (8.5) 


1458 


(7.4) 1897 (6.6) 


Not known 


1 




4 








Univ, non-degree 


703 (3.0) 


822 


(4.1) 986 (3.4) 


Total 


7528 




7083 




11304 




B.A. 


2665 (11.5) 


1740 


(8.8) 2540 (8.8) 
















Some post-graduate 192 (0.8) 


123 


(0.6) 168 (0.6) 


Occupation 














M.A. 


702 (3.0) 


445 


(2.2) 610 (2.1) 


In 1990, about half of all immigrants from Hong Kong were 


Ph.D. 


38 (0.16) 


32 


(0.16) 40 (0.14) 


destined for the work force. There were some significant changes in 


Not known 


2 


1 


224 


the occupational composition of the 


immigrant group 


from 1988 to 


Total 


23281 


19861 


28922 


1990. The percent 


ige of e 


ntreprenei 


irs fluctuated from 4.7% 


in 1988 



At the highest levels of education, the number of university 
graduates was 3597 (15.1%) in 1988, 2340 (11.8%) in 1989 and 
3358 (1 1.6%) in 1990. For principal immigrants alone, the figures 
for university graduates were 2869 (27.7%)in 1988, 1681 (20%) in 
1989 and 2282 (20.4%) in 1990. At the bottom end of the 
educational spectrum, the proportion of adults with little education 
included: in 1988, 3503 (33.8%) principal immigrants with 
secondary school education or less, in 1989 42.9%, and in 1990 
45.4%. In 1988 57.8% of spouses had secondary school education 
or less, in 1989 65%, and in 1990 66%. Many of the dependents are 
still at school. 



to 6.5% in 1989, to 3.5% in 1990, while the managerial and 
administrative category declined from 12.5% to 8.6% (1989) to 
7.6% (1990). New workers rose from 4.4% to 10.1%. 



6 UPDATE 





1988 


% 


1989 


% 


1990 


% 


Entrepreneur 


1087 


(4.7) 


1276 


(6.5) 


1030 


(3.5) 


Investors 










533* 




Managerial 














& admin. 


2876 


(12.4) 


1696 


(8.6) 


2189 


(7.6) 


Science/ 














engineering 


1170 


(5.0) 


493 


(2.5) 


613 


(2.1) 


Social Science 


283 




131 




213 




Religion 


19 




22 




19 




Teacher 


148 




95 




95 




Medicine & health 


335 




215 




294 




Arts 


275 




242 




269 




Sports & recreation 


4 




2 




4 




Clerical 


2604 


(11.2) 


1872 


(9.4) 


1280 


(4.4) 


Sales 


912 




632 




895 




Service 


325 




344 




379 




Farming 


8 




4 




7 




Fishing, hunting 


7 














Forestry 


1 














Mining 












1 




Processing 


20 




21 




29 




Machining 


27 




23 




55 




Fabricating 


361 




250 




493 




Construction 


49 




58 




166 




Transport 


31 




18 




19 




Material handling 


23 




11 




3 




Other crafts 


53 




55 




170 




New workers 


1013 




1994 









Not classified 


- 




- 




5742 




Not stated 


- 




- 




32 




Other 


11650 




10407 




- 




Total workers 


- 




- 




14540 




Non-workers 


- 




- 




14409 




Total 


23281 




19861 




28949 





* classification introduced in 1990 

We should like to thank Meyer Burstein, Ludvik Medona and Ron Cadieux of 
Employment and Immigration Canada, for making these statistics available to us. 



Martin Pilzmaker 



On April 19, 1991, Martin Pilzmaker 
was found dead in his Toronto apartment; 
his death appears to have been a suicide. 
When he died, Mr. Pilzmaker was free on 
bail, facing a series of charges of 
conspiracy, forgery, making false 
declarations, uttering false documents, theft 
and fraud. The charges related to his 
immigration practice at Lang Michener 
Lash Johnston, a prominent Toronto law 



firm. His practice centred on bringing in 
people from Hong Kong under the Business 
Immigration Program. He was disbarred 
from the Law Society of Upper Canada in 
January, 1990. His trial was to have started 
on May 20. His lonely death brought to an 
end a career which for a brief period was 
glamorous and highly lucrative, but crashed 
in ruins when his activities came to light. 



Immigration Patterns, 
1990-91 

by Diana Lary 
Toronto 

The final immigration figures for 1990 
reveal that the number of Hong Kong 
immigrants landed in 1990 rose 
significantly over previous years, from 
23,281 in 1988 and 19,861 in 1989 to 
28,949 in 1990. The number of immigrants 
may be expected to continue at a high rate; 
in 1990, 13,273 applications* were 
received from people whose country of last 
permanent residence was Hong Kong. 



Applications received 1990, CLPR 


Hong Kong 




Family class 


5048 


Convention refugee 





Designated class 


48 


Assisted relatives 


1512 


Entrepreneurs 


3210 


Investors 


1074 


Self-employed 


220 


Retired 


758 


Other independents 


1403 



Total 



13273 



Family and business classes accounted 
for 71.9% of these while the independent 
class accounted for only 10.6%. Not all 
these applications were received in Hong 
Kong; 2,042 were made at other posts, 
principally in the USA. Processing times 
can be expected to be shorter at these posts 
than in Hong Kong where there is a 
considerable backlog. There are presently 
21,020 applications in process at the HK 
Canadian Commission, the majority in the 
family and business classes which are 
given priority in processing. There are 
several thousand further applications at the 
Commission whose processing has not yet 
started; these are principally in the 
independent and assisted relative classes 
which do not have processing priority. 

* An application may be for more than one 
person. 



UPDATE 7 



Macau's Transition to Chinese Rule 



After almost 450 years as a Portuguese 
administered territory, Macau, the oldest 
European enclave in China, confronts an 
uncertain future as it prepares for Beijing to 
take the reigns in less than nine years. On 
December 20, 1999, Macau will become a 
Special Administrative Region of China, 
theoretically with the same "high degree of 
autonomy" and right to continue its 
capitalist, liberal way of life for 50 years as 
granted to Hong Kong. However, 
Portuguese officials and Macau people 
alike fear the People's Republic of China 
will swallow Macau's almost 17 square 
kilometres in one bite. In many ways 
Macau is already half way into the dragon's 
mouth. 

A Monaco of the Far East to the Hong 
Kong Chinese who crowd its casinos on 
weekends, the Portuguese enclave has long 
lived under the British colony's economic 
shadow, Lisbon's benign neglect and 
China's political thumb. There are 
advantages to its close relationship with the 
PRC, according to Edmund Ho, a 
prominent Macau Chinese banker and York 
University alumnus. Ho, who received his 
high school as well as university education 
in Canada, is considered to be Beijing's 
choice for governor of Macau after 1999. 
"The majority of Macau people are willing 
to work with China," Ho maintained in an 
interview. "In this respect it [the transition] 
will go much more smoothly than in Hong 
Kong." However, Ho, whose late father Ho 
Yin was Beijing's unofficial representative 
in Macau for years, admitted mere are other 
problems to overcome if Macau is to make 
a successful transition to PRC rule. 

As the majority of its inhabitants were 
born in China and many are recent 
immigrants, identity with Portuguese 
Macau is very weak and attachment to 
China is strong. Portuguese remains the 
territory's only official language although it 
is spoken by only 4% of Macau's 500,000 
overwhelmingly Chinese residents. As a 
result, very few local people have either the 
linguistic or technical capacity to run the 
Portuguese-style government or legal 
system. Furthermore, Macau's economy is 
dominated by Hong Kong investors in 
textiles, toys, plastics and electronics 



by Susan Henders 
Hong Kong 

manufacturing and Hong Kong weekend 
gamblers. 

"Our future autonomy is forced, not 
natural," Macau Legislative Assembly 
deputy, Alexandre Ho, said in an interview. 
"We have to try to create the conditions 
that will make it work, but it's very 
difficult." These measures include the 
strengthening of Macau's economic and 
political infrastructure. 

The Portuguese say they are reluctant to 
let the last remnant of their empire be 
absorbed into Hong Kong or the 
neighbouring PRC Special Economic Zone 
of Zhuhai. After the debacles of Portuguese 
decolonization in Goa (now part of India), 
Africa and East Timor (now part of 
Indonesia) in the 1960's and 1970's, Macau 
is Portugal's last chance at a dignified, 
peaceful exit. With the way smoothed by 
Lisbon's generally cordial relationship with 
China, Portuguese officials are trying to 
make the most of their last years in the 
enclave. 

In partnership with casino magnate 
Stanley Ho and Portuguese and PRC 
investors, the present Macau government is 
spending billions of dollars trying to 
transform its faded colonial facade and 
quiet alleys into the chrome and glass-lined 
streets of a booming regional service 
centre. "It can't be autonomous politically, 
in size or in population," concludes Joao de 
Deus Ramos, an expatriate Portuguese who 
is Macau's Secretary for Transitional 
Affairs. "The only place where we can do 
things is in the economy." 

The government and its partners are 
pushing ahead construction of the 
territory's new airport and deepwatcr port, 
its first international transportation links 
that do not depend on Hong Kong. With a 
new 3.9 kilometre bridge to the PRC 
border, high-tech industrial park, 
technology institute and United Nations 
software centre also planned, the 
government hopes to attract enough 
international investors to turn Macau into a 
service hub for the west side of China's 
prosperous Pearl River delta. 

Portugal's history of uncertain 
sovereignty in the territory has traditionally 
hampered its administration in Macau, 



which is officially described as Chinese 
territory under Portuguese administration. 
"I don't think we've ever had a clearer cut 
plan for the next 60 years than we do now," 
Ramos commented. 

If global business cycles cooperate and 
the strategy succeeds, economic success 
could provide significant benefits for 
Macau's political autonomy. Until now the 
main guarantee of its post- 1999 status as a 
liberal, capitalist enclave in communist 
China has been Beijing's desire not to do 
anything in Macau that might upset 
business confidence in Hong Kong. The 
enclave is assuming the Chinese 
government would be more likely to keep 
its hands off if Macau is independently 
useful to China's economic modernization 
drive and if it has a higher international 
profile. Other potential barriers to PRC 
interference, such as a strong local civil 
service, independent judiciary and a vibrant 
political system, might not provide much 
help. 

Macau Chinese, few of whom have been 
motivated to leam Portuguese, have 
traditionally been excluded from all but the 
lowest ranks of the civil service. All 
government policy-making and senior 
technical posts are occupied by expatriate 
Portuguese on short-term contracts. The 
Macanese, 10,000-15,000 locally-born 
Eurasians who speak both Cantonese and 
Portuguese, dominate the administrations 's 
middle ranks and act as intermediaries 
between Chinese residents and their 
Portuguese rulers. All of Macau's judges 
and all but a handful of its lawyers are 
Portuguese. The rest are Macanese. 

The Portuguese have begun training 
younger local Chinese to assume senior 
civil service positions. This involves 
Portuguese language instruction so they can 
communicate with departing expatriate 
administrators and read the numerous 
Por'uguese documents and laws of the 
colonial enclave. However, even if 
localization efforts succeed, there is no 
guarantee the newly-trained bureaucrats 
will stay in Macau beyond 1999. More than 
100,000 Macau people, most of them 
Chinese, have full Portuguese citizenship, 
including the right to live in Portugal and, 



8 UPDATE 



after 1992, anywhere in the European 
Community. Ironically, this will entitle 
them to live in Britain, an option available 
to few Hong Kong Chinese under current 
British nationality laws. 

Opinion polls taken in late 1989 
indicated about one in five Macau Chinese 
plan to emigrate, most to Canada, the 
United States or Australia, and not to 
Portugal. Younger, better educated Chinese 
who make up the majority of new civil 
service recruits are particularly distrustful 
of China's intentions toward Macau and are 
most likely to leave unless their confidence 
improves. The 1989 polls found as many as 
65% of Macanese also plan to leave, many 
of them civil servants. 

Prospects for a smooth transition are no 
better for the legal system. In 1989 the 
Macau government began in earnest to 
translate Macau's Portuguese legal codes 
into Chinese. It hopes to have the bulk of 
the job completed by late 1999, but it is still 
unclear who will be administering and 
interpreting the law after the Portuguese 
leave. A new law program at Macau's 
University of East Asia (the name will 
change to the University of Macau in the 
next academic year) will graduate the 
enclave's first class of Macau-trained 
lawyers in 1993. However, difficulties in 
studying law in Portuguese have forced 
some local Chinese to drop out of the 
program. Most of the first graduating class 
will be expatriate Portuguese with little 
reason to remain in Macau although some 
will be allowed to work for the post-1999 
government. 

Fortunately, the number of local 
Chinese law students is increasing each 
year. Nevertheless, Macau people still 
worry that shortages of local Chinese 
administrators, interpreters, judges and 
lawyers after 1999 will make it easier for 
Beijing to bring in its own people to fill 
vacant positions. Macau's Secretary for 
Justice, Sebastiao Povoas, admitted that 
two PRC students in the first year of the 
Macau law program - both fluent in 
Portuguese and armed with mainland law 
degrees - have caused some anxiety. 
However, he defends their presence by 
saying, "It's better to bring them into 
Macau now than wait for them to come 
after 1999 anyway, but without training in 
our way of understanding the law." 



Beijing's political influence in Macau 
has always been significant. Local Chinese 
business, labour and kai fong 
(neighbourhood) associations with close 
ties to Beijing have secure control over the 
Portuguese Governor's Consultative 
Council and the Legislative Assembly, 
which has had a minority of directly elected 
seats since 1976. 

With economic prosperity in recent 
years, Macau society is better educated, 
richer and more pluralistic. In 1988 
Alexandre Ho's liberals won three out of 
six of the elected seats in the assembly for 
the first lime. In May and June 1989, an 
estimated 100,000 Macau people 
demonstrated in support of the Tianamen 
Square student movement in Beijing, 
proportionately as many as marched in the 
streets of Hong Kong. 

However, in the March 1991 interim 
elections, traditional pro-Beijing forces 
showed their tenacity by winning both of 
two contested seats. Macau democracy 
activists worry that expanding the number 
of directly elected seats in the legislature - 
indirectly elected and appointed deputies 
have the majority - will not bolster 
Macau's defenses against China, at least in 
the short run. 

"If we open up now, we will only have 
the traditional business community, labour 
unions and kai fong association parties 
control everything," predicted Catarina 
Mok, a Macau journalist. "When the civic 
education level is a little bit higher, then we 
should have more directly elected seats. 
"Without maintaining its political, legal and 
administrative differences, without a 
population that sees itself as distinct from 
other Chinese, people like Catarina Mok 
fear Macau could soon disappear into the 
flourishing economy of South China. 



Indians of Hong Kong: 
Citizenship After 1997? 

by Janet A . Rubinoff 
Toronto 

As the countdown to 1997 approaches, 
it is not only the Chinese of Hong Kong 
who are concerned about their economic 
and political fate under PRC sovereignty. 
The nationality issue of ethnic minorities 
like the Indians of Hong Kong - especially 
those who hold British Dependent Territory 
Citizenship (BDTC) passports - is of 
particular concern. 

One of the largest non-Chinese 
communities of Hong Kong are the ethnic 
Indians who number approximately 20,000. 
While the majority (15,300) of these 
remain Indian citizens, a number (4,518) 
who were bom in the territory or who have 
lived there for years are BDTC passport 
holders [1986 Hong Kong Census]. It is the 
concern of the latter that they will be 
"stateless" after 1997. As one Indian 
businessman in Hong Kong described his 
nationality situation, "Deep down, I am 
nowhere. My family left Sind, now part of 
Pakistan, after the partition of India and 
came to Hong Kong. We are not citizens of 
India, and our BDTC passports no longer 
give automatic right of abode in the U.K." 

The Joint Declaration and Basic Law 
failed to settle the nationality issue of Hong 
Kong's minorities. In subsequent 
Memoranda between the PRC and UK 
governments, Beijing has asserted only that 
the Chinese of Hong Kong will be 
automatically recognized as Chinese 
citizens in the HK Special Administrative 
Region. Other ethnic minorities like the 
Indian community will receive rights of 
residence only and must apply for Chinese 
citizenship. On its part, Britain has 
accepted the BDTC passports merely as 
travel documents after 1997 that do not 
confer a right of abode or citizenship in the 
U.K. As a result, non-Chinese BDTC 
passport holders feel doubly betrayed. As 
one Indian researcher, Rup Narayan Das, 
has concluded in a recent article, "The 
rights of residence [in Hong Kong] bereft 
of the status of nationality reduces the 
position of ethnic minorities to that of 
aliens living in a foreign land" [The Other 
Hong Kong Report, 1990: 151]. 

Indians of Hong Kong, cont'd page 10 



UPDATE 9 



Indians of Hong Kong, from page 9 

The Indian presence in the colony goes 
back to its founding in 1841 when 2,700 
Indian soldiers and four traders 
accompanied the British landing forces in 
Hong Kong. As in other parts of the British 
Empire during the 19th and early 20th 
centuries, a number of lower echelon civil 
servants and police were recruited from 
India. In addition, a number of Indian 
business families established themselves 
over the years in Hong Kong and 
contributed significantly to the economic 
development of the territory, especially 
after World War II. Two events in 
particular stimulated the exodus of Hindu 
business families to Hong Kong: the 
partition of India in 1947 and the 
Communist takeover of China in 1949 
when Indian traders left Shanghai and 
Canton. 

The composition of the South Asian 
community of Hong Kong is diverse and 
reflects the many different cultural groups 
of the Indian subcontinent. The largest 
group (roughly 50%), especially within the 
business community, are of Sindhi origin 
(from the city of Hyderabad, now part of 
Pakistan). Some Sindhi families like the 
now prominent Harilelas arrived in Hong 
Kong in the early 1930's from Canton or 
Singapore. The second largest group are the 
Sikhs who number about 2,000 and are 
mainly employed in the police and armed 
forces. Others include the Parsis who were 
the earliest traders to arrive with the British 
in the mid- 19th century; the Marwaris, 
originally from Rajasthan, who fled Burma 
in the 1960's; the Gujarati and Tamil 
traders who dominate the diamond market; 
Goans from the former Portuguese colony 
in India; and a small number of others. 

Overall the Indian community 
represents only 2% of Hong Kong's 
population, but it has done remarkably well 
in trade and manufacturing, especially to 
non-western markets in Africa, South 
America or the Middle East. According to 
the Far Eastern Economic Review [April 
12, 1990: 44], over 400 Indian firms 
"account for an estimated 10 % of 
Hongkong's annual USS75.8 billion in 
exports." 

Now the Indian ethnic minorities are 
faced with an uncertain future, and 
members of the community have 
considered a number of options. Most 
Indians, especially established 



professionals and businessmen, prefer to 
remain in Hong Kong though they 
recognize that this may not be possible 
after 1997. Many would like an "insurance 
policy" for immigration just in case. In an 
optimistic assessment, Hari Harilela, a 
prominent businessman and leader in the 
Indian community, said in a speech before 
the Progressive Association of Indian 
businessmen on January 8, 1991, that 
"Unfortunately, many people have come to 
regard 1997 as a dead end.. ..they see no 
future here. However, I feel such thinking 
is mistaken. Far from being the end of the 
road, 1997 is only a transition point, 
actually, even a new beginning.... 

"Rather than concern themselves with 
political matters, Indians have always tried 
to concentrate their energies on economic 
development. In this way, we become an 
asset to whatever government is in power. 
It is plain, therefore, to see that we can 
continue to be of use to the economic 
continuity of Hong Kong, come 1997 and a 
long time thereafter." 

With this in mind, some Indian 
businessmen have adopted a "wait and see" 
attitude. Some have opted for closer ties 
with China and have invested more heavily 
in factories in Guangdong where labour is 
cheaper. Others, however, have considered 
the option of emigration. In some cases 
parents, who retain their businesses or 
careers in Hong Kong, have sent their 
children abroad to be educated and to 
provide alternative employment - 
citizenship options. As one businessman in 
Hong Kong explained, the implications of 
this emigration of the younger generation 
have important repercussions on the joint 
Indian business family. Many Indian firms 
in Hong Kong are entirely family owned, 
like the Harilela enterprises. The loss of 
young adults and their dispersal in various 
western countries poses some threat to the 
strength, flexibility and continuity of these 
family firms and the unique family- 
dominated business culture of the Indian 
community. 

One approach of the Indian BDTC 
passport holders has been to pressure the 
UK Government for recognition of rights of 
abode or full citizenship. They have felt 
betrayed and abandoned by the British 
position, with its "undertone of racial 
discrimination," on immigration from Hong 
Kong and the recent Nationality Act [The 
Other Hong Kong Report, 1990: 153]. The 



latter is perceived to be a program mainly 
for the Chinese of Hong Kong. 

The preferred destination for many is 
Singapore or other cities of Southeast Asia 
- partly for the similarity of climate and life 
style and mainly for the favourable markets 
and tax laws comparable to Hong Kong. 
For many of the less wealthy who retain 
Indian citizenship, the only option may be 
to return to their country of origin. 
However, in the case of ethnic Indians with 
BDTC passports, New Delhi has claimed 
they are the responsibility of the UK 
government as British overseas citizens. 
What India would do after 1997 to accept 
refugees from Hong Kong of Indian origin 
is an open question. 

Because of differences in standards of 
living, tax structures and business 
environment in India, many, if qualified, 
prefer to migrate to western countries, 
including Canada, the U.S. and Australia. 
The Goans have a unique alternative to 
their BDTC passports; as natives of a 
former Portuguese colony, they may still 
apply for Portuguese citizenship which 
allows them after 1992 rights of abode 
anywhere in the European Community 
including the U.K. - a right that other Hong 
Kong Indians or Chinese do not have. 

Because it is perceived to have a fairer 
and more open visa process and a stable 
government, Canada is high on the list of 
preferred destinations. I interviewed several 
Indian professionals and businessmen who 
have recently immigrated to Toronto from 
Hong Kong. Several have entered under the 
retired class and have tried to re-establish 
their businesses or professional careers in 
Canada. They have found this difficult 
because of the recession and Canadian 
restrictions on job experience and foreign 
qualifications. Canada was attractive 
because of its high standard of living and 
educational opportunities for their children. 
One individual mentioned that it was not so 
much fear of the Chinese that had caused 
him to immigrate but for better 
opportunities here for his children. He was 
concerned about the possibility of 
discrimination against ethnic minorities by 
the Chinese government. Though many of 
the community had opted to remain in 
Hong Kong, one informant felt that if the 
business climate deteriorated after 1997, 
"most Indians would leave as there would 
be no future for them there." 



10 UPDATE 



For this issue of the Update, our research 
assistants in Toronto and Vancouver have 
compiled a list of organizations within the 
Chinese and Hong Kong immigrant 
communities in Canada which are concerned 
with a variety of issues - social, cultural, 
political, economic - as well as with promoting 
ties between Canada and Hong Kong. We have 
only included a partial list here and will 
continue with others in the Fall issue of the 
Update. We have also included several pictures 
of Chinese areas of Vancouver and Toronto. 

Chinese-Canadian 
Associations in 
Vancouver 

by Hugh Xiaobing Tan 
Vancouver 

United Chinese Community 
Enrichment Services Society 
(SUCCESS) 

Founded in 1973, SUCCESS is a non- 
profit social service agency to assist Chinese 
Canadians in overcoming language and 
cultural barriers so that they can more 
successfully participate in Canadian society. 
Its purpose is to serve as a "bridge" between 
the two cultures and traditions. SUCCESS 
provides services in five areas: family and 
youth counselling, settlement and public 
education, group and community 
development, employment services, and 
resource development. 

From its inception, clients have mainly 
been from Hong Kong; however, especially 
after 1989, its services to immigrants from 
mainland China and Taiwan have 
considerably increased In 1990, the society 
provided over 1 10,000 service contacts for 
60,000 people, and this demand is expected 
to increase during 1991. Most of its clientele 
are between 20 and 40 years old. 

Now in its 18th year of operation, the 
organization is well known to the general 
public. Its executive administrators, Maggie 
Ip and Lilian To, are often featured in the 
local Chinese newspapers. SUCCESS 
employs 40 full-time and 35 part-time 
people as well as 1,000 volunteers. Having 
begun with only one office on Hastings 
Street, the organization is now located in the 
centre of Chinatown and occupies the entire 
second floor of the Beijing Building. 
Subsidiary offices are located in the South 
Vancouver area, Richmond and Burnaby. 



Chinese Cultural Centre (CCC) 

The CCC mainly deals with cultural 
matters. Its objectives include the 
interpretation of China and its people to 
Canadians, the interchange of Canadian and 
Chinese cultural traditions, collaboration 
with other local organizations in sponsoring 
international artistic and cultural programs, 
and the promotion of better understanding 
and friendship between the Chinese 
community and other communities and 
ethnic groups. 

The idea for a Chinese cultural centre 
emerged from discussions at a conference in 
1973 held at the Wong's Benevolent 
Association in Chinatown. At the time 
delegates from Chinese community 
organizations formed a 21-member Cultural 
Centre Building Committee to set up an 
independent entity to promote cultural 
events. First registered in 1974, the CCC 
sponsors a number of cultural as well as 
training programs. One of the main events is 
the annual Spring Festival Celebration. The 
CCC also invites well known anists and 
performance groups from the PRC and Hong 
Kong to come to Canada. Its cultural classes 
include Chinese calligraphy, painting, Tai 
chi, martial arts, dancing and Chinese 
language training. 

A permanent building for the CCC was 
completed in September 1980. The China 
Gate, which once stood at the entrance to the 
Chinese pavilion at the 1986 Expo site, was 
moved in 1988 to the main entrance of the 
CCC building. Plans are now underway to 
construct a S2 million museum/library 
complex in the Suzhou Garden style, and a 
funding campaign has begun to solicit 
donations. 

At present, the organization employs 16 
full time administrative staff plus about 40 
program training teachers. Membership in 
the Centre has reached over 1,300. A new 
office has been opened in Richmond where 
many Chinese immigrants have recently 
settled. 




Gate to the Chinese Cultural Centre 



The Chinese Benevolent Association 

(CBA) 

The CBA was founded in Victoria, B.C. 
in 1906 and is one of the oldest Chinese 
Canadian organizations. It moved to 
Vancouver during the 1930's when the 
concentration of Chinese increased in that 
city. At that time, the primary focus of the 
association was to provide needy Chinese 
immigrants with charity and relief funds. 

In 1979, internal political dissension led 
to the splitting of the membership and the 
formation of another organization with a 
similar name, the Chinese Benevolent 
Association of Canada (see below). Those 
who remained in the CBA still use the 
original name. 

Today the CBA is an umbrella 
organization which has 48 group members, 
including SUCCESS, the CCC and other 
major organizations in Chinatown. 
Individual membership is difficult to 
determine since the fee is only SI per person 
and there are a variety of ways to become a 
member. The president of the association 
estimates about 10,000. 

Distinct from the service and cultural 
organizations, the CBA is mainly concerned 
with social and political issues within the 
Chinese Canadian community. It is one of 
the organizations which initiated the recent 
Chinese Canadian National Conference that 
was held in Toronto, May 1991. One of the 
major topics discussed at this conference 
was the head tax and redress issue. 

In addition to its political concerns, the 
CBA also sponsors local social activities 
such as the Chinese Spring Festival parade, 
celebrations of the national days of Canada 
and the People's Republic of China, and 
memorial ceremonies in the spring and 
autumn. 

Chinese Benevolent Association of 
Canada (CBAC) 

After splitting from the CBA in 1979, the 
CBAC has a group membership of 1 1 and an 
individual membership of 600, most of 
whom have immigrated from Taiwan. It is 
not only a Vancouver-based organization but 
also the headquarters of CBAC branches 
across Canada. Each year delegates from 
different provinces come together to hold 
general meetings. 

The CBAC mainly concentrates on social 
activities, entertainment and education. It 
sponsors both a Chinese music and a Tai Chi 

Vancouver Associations, cont'd page 12 



UPDATE 11 



Associations, from page 1 1 

group. It also provides financial support for 
the Overseas Chinese Public School where 
students are taught in Mandarin. In addition, 
the CBAC serves as an arbitrator over minor 
disputes within the Chinese Canadian 
community. Recently it invited 14 famous 
Taiwanese cooks to Vancouver to hold a 
Food Art Festival, also known as the "Feast 
of the Chinese New Year." The festival was 
the first of its kind in Vancouver and 
aroused considerable interest from the 
community. In addition to encouraging its 
young members to visit Taiwan, each year 
the association sends a delegation to Taiwan 
for the October 10th celebration. 

The Vancouver Chinese Freemasons 
(VCF) 

Founded in 1888, the VCF is probably 
the oldest Chinese Canadian organization in 
this country. Because of the discrimination 
Chinese faced at the time, the organization 
provided protection and assistance to the 
community and negotiated with the 
government Therefore, 80% of the Chinese 
immigrants in Vancouver belonged to the 
VCF. 

The Vancouver branch is part of the 
world wide network of Chinese Freemasons. 
The original revolutionary goal of the 
Chinese Freemasons was to overturn the 
Qing Dynasty and restore the Ming. In fact, 
when Dr. Sun Yat-sen visited Vancouver to 
promote his revolutionary activities, he was 
supported by the VCF. In order to publicize 
its goals, the VCF founded The Chinese 
Times daily newspaper in 1907. As the 
oldest Chinese press in continuous 
publication in Canada, the paper provides 
valuable information on the history of the 
Vancouver Chinese community. 

Today the VCF is still one of the major 
organizations in Vancouver's Chinatown, 
with a membership of more than 3,000 
people. Its subsidiary association, the 
Chinese Freemasons Athletic Club, is well 
known in the community for its variety of 
sports activities. A recent achievement of the 
VCF is the completion of the Chinese 
Freemasons' Senior Building. This 81-unit 
complex was funded by the government and 
is very close to Vancouver's Chinatown. 
Plans are in progress to build similar homes 
for Chinese senior citizens in Victoria and 
Kamloops. 



Wong's Benevolent Association 

(WBA) 

The WBA is one of the biggest and 
oldest clan-charity organizations in 
Vancouver's Chinatown. It was founded in 
191 1. Since the main goal of the WBA is to 
strengthen connections between the Wong 
people/clan, anyone with the family name 
Wong can join. At present it has a total 
membership of 700 who work in a variety of 
industries. 

It has two subsidiary organizations: the 
Mon Keang School and the Hon Hsing 
Athletic Group. The former is said to be the 
only Chinese school run by a clan 
organization in North America. It recruits 
students who were bom in Canada and want 
to learn Chinese. The major activity of the 
athletic group is the performance of the lion 
dance and accompanying music and drums. 
In addition to its cultural activities, the WBA 
has also recently been concerned with 
political issues like the head tax and other 
concerns of the Chinese community. 




Wong Benevolent Association 

Chinese Consumers' Association of 
Vancouver (CCAV) 

Founded in 1986, the CCAV has now 
more than 200 members. Its main goal is to 
serve as negotiator for potential conflicts 
between consumers and retailers. Its present 
chairwomen is a recent UBC law graduate 
who immigrated to Vancouver with her 
family from Hong Kong eight years ago. 



Chinese Canadian 
Associations in Toronto 

by Irene Tong 
Toronto 

The Chinese Cultural Centre of 
Greater Toronto (CCC) 

Since the formation of the Steering 
Committee in the summer of 1988, the CCC 
has grown to about 130 members. As a non- 
political, non-religious and non-profit 
organization, it aims to preserve and promote 
Chinese culture and heritage as part of 
multicultural development in Canada. It also 
provides a focal point for the cultural 
activities of the Chinese Canadian 
community. 

The CCC's activities planned for this year 
include hosting a pavilion at Caravan 1991, 
sending teams to the Dragon Boat Race, 
organizing a concert on Chinese music and 
hosting a table tennis tournament. 
Address: 

900 Don Mills Road, Unit 3 
Toronto, Ontario M3C 1V8 
Executive Committee Chairman: 
Dr. Ming Tak Cheung 
(416) 445-2808 

Toronto Chinese Business Association 

The Association was founded in 1972 as a 
non-profit business community group and 
has now a membership of about 1,100, one- 
third of which is under a sister organization, 
the Ontario Chinese Restaurant Association. 
There has been a shift in membership from 
consumer and retail businesses to major 
corporations in the manufacturing sector and 
professionals. It aims to represent the 
Toronto Chinese business community in 
response to legislation and government 
policies, such as the Occupational Health and 
Safety Act, the Workers' Compensation Act 
and the Employment Equity Act. It has also 
been playing an advisory and participatory 
role on issues such as the City of Toronto 
1991 Official Plan, the street vendor problem 
and Sunday shopping in Chinatown. 

In promoting and assisting Canadian 
Chinese businesses, the Association has 
established links with the Hong Kong 
Government, the Hong Kong Trade 
Development Council and the Hong Kong 
Tourist Association. 
Address: 
P.O. Box 100, Station B 



12 UPDATE 



Toronto, Ontario VIST 2C3 
(416) 595-0313 

Hong Kong Canada Business 
Association (HKCBA) 

The HKCBA was established in 1984 to 
bring together business people in Canada 
who are interested in strengthening trade 
relationships with Hong Kong. It has more 
than 3,500 members, both corporate and 
individual, in 1 1 Canadian cities; the Toronto 
section alone has about 600. 

As the major objective is to promote 
bilateral contacts, trade and investment 
between Canada and Hong Kong, the 
HKCBA tries to act as an information 
clearing-house. Both the Association's 
national newsletter, The Hong Kong 
Monitor, and the monthly bulletin published 
by the individual sections inform members of 
current economic and poliucal developments 
in Canada and Hong Kong as they affect 
trade and business relations. In the Toronto 
Section, monthly workshops and occasional 
seminars, luncheons and dinner meetings are 
organized not only as a forum for increasing 
knowledge through presentations by experts, 
but also as an opportunity for networking. 

The Association also tries to represent its 
members' opinions and concerns to the 
business community and to governments. 
Occasional missions to Hong Kong are 
arranged, often in cooperation with the Hong 
Kong Trade Development Council. This 
June, it is taking a major role in Festival 
Canada 1991 in Hong Kong. 
Address: 

347 Bay Street, Suite 1100 
Toronto, Ontario M5H 2R7 
President (Toronto Section): 
James Klotz 
(416) 366-2642 

Chinese Canadian National Council 
(CCNC) 

Since its inception in 1979, the CCNC 
has grown to include 29 local chapters and 
affiliates across Canada. As the Council was 
bom of a collective reaction against media 
reporting with racist overtones, its main 
objective is to create an environment which 
fully recognizes and protects the rights of all 
individuals, particularly those of Chinese 
Canadians, and their full and equal partici- 
pation in Canadian society. The realization of 
this objective is sought through the 
development of a strong national voice and 
an effective communications network, by 



monitoring the media and by fighting 
stereotyping and institutional racism. To 
heighten political awareness and partici- 
pation, it sponsors candidates' meetings, 
informs the public of important issues, 
organizes poliucal awareness workshops and 
writes to various levels of government. 

In concrete terms, the CCNC has recently 
undertaken a survey on perceptions of 
prejudice and racism in Vancouver and 
Toronto. It hopes to cooperate with 
governments to eliminate anti-immigrant 
feelings and to recognize foreign 
professional accreditation. It is also pushing 
federal, provincial, and municipal 
governments to implement mandatory 
employment equity programs for the benefit 
of minority groups. Since 1984 the CCNC 
has been at the forefront of the campaign for 
redress of the wrongs suffered because of the 
head tax and the Chinese Exclusion Act. 

The CCNC also seeks to cultivate in 
individuals of Chinese descent, a desire to 
know and to respect their historical and 
cultural heritage, and to promote mutual 
understanding between Chinese Canadians 
and other ethnic, cultural and racial groups in 
Canada. This is often done through cultural 
and social activities, such as festivals, fairs 
and exhibitions. 
Address: 

386 Bathurst St., 2nd Floor 
Toronto, Ontario M5T 2S6 
President (Toronto Chapter): Amy Go 
(416) 868-1777 

Toronto Association For Democracy in 
China (TADC) 

Formerly known as the Toronto 
Committee of Concerned Chinese Canadians 
Supporting the Democracy Movement in 
China (formed on May 20, 1989), TADC 
was incorporated as a non-profit organization 
in Ontario in April, 1990. It now has about 
200 members. Its main objectives are to 
educate the Canadian public and lobby the 
government on democracy and human rights 
issues (e.g. Mohawk rights), and to provide 
support for non-violent, pro-democracy 
movements around the world, particularly in 
China. 

In 1990 it organized activities on the 
theme "We will not forget the June 4 
Massacre." During the May-June period 
("Democracy Month"), a large-scale Concert 
for Democracy was organized, followed by a 
drawing contest, an art exhibition and a rally 
in Toronto. As part of its lobbying effort, 



TADC wrote to the Secretary of State for 
External Affairs, Mr. Joe Clark, in support of 
Canada's suspension of normal relations with 
China until human rights were respected in 
Beijing. It also supplied information to the 
fact-finding mission of the parliamentary 
delegation on human rights in China. 
Together with other groups in Toronto, the 
TADC organized a protest and forum on the 
Chinese National Day. A joint press 
conference was held on the International Day 
for Human Rights on human rights violations 
in China. 

TADC continues to work closely with 
and provide some funding for Chinese 
students and scholars in Canada who 
participated in the democracy movement In 
addition to organizing a series of educational 
seminars on Chinese politics and culture, it 
sponsored the first North American 
Conference of Community-Based 
Organizations in San Francisco and hosted 
the second one in Toronto in April this year. 
(see p. 16) On some occasions, eye-witnesses 
to the massacre were invited to speak. It will 
continue to monitor the suppression of 
dissidents and secret trials taking place in 
China and to call for the release of poliucal 
prisoners. Representatives of TADC also 
attend meetings of other similar 
organizations as part of its liaison and 
networking effort It shows concern and 
support for other groups such as the Tibetan 
people, the Lithuanian community and South 
Africans. 
Address: 

Suite 407, 253 College Street 
Toronto, Ontario M5T 1R5 
Chairperson: Dick Chan 
(416) 931-7621 




Spadina Chinatown 



UPDATE 13 



Support for Hong Kong in the UK 



When the Joint Declaration between 
Britain and China was signed in 1984, the 
prevailing attitude in London was that duties 
to Hong Kong had been satisfactorily 
discharged and that there was little need for 
disquiet. This perception was reflected in the 
relatively small number of organizations, 
MP's or other prominent people who made 
Hong Kong or safeguards for its people a 
particular focus of their interests. 

Since the Peking massacre of June 1989 
and the subsequent introduction of the HK 
Nationality Bill in April 1990, the issue of 
Hong Kong's future has attracted greater 
media coverage in the UK. Organizations 
campaigning for a more open immigration 
policy and greater democracy in Hong Kong 
were set up while existing groups increased 
their activities. In addition, many public 
figures spoke out on these issues. 

The level of activity over Hong Kong 
should not be overstated. Now that the 
immigration controversy is considered to be 
settled (see UK Nationality Package, p. 3), 
there has been a concomitant decline in Hong 
Kong's media profile. Consequently, there is 
decreasing public awareness of and interest 
in Hong Kong. Below are listed the main 
organizations and notable individuals in 
Britain involved with Hong Kong issues. 

Friends of Hong Kong Committee 

This organization was set up in 1986 in 
response to uneasiness about the return of 
Hong Kong to Mainland China in 1997. 
Highlighting the general British 
complacency on Hong Kong issues, the 
Committee in a press release stated, "It is a 
matter of some pride to reflect that our 
Committee then and subsequently was 
almost alone in taking a more sceptical view 
[of the Joint Declaration]." 

The main activity of the Committee is the 
publication of a quarterly release, The Hong 
Kong Monitor, which provides current 
information on events in Hong Kong, China 
and elsewhere. It also sponsors periodic 
seminars on matters of concern about Hong 
Kong. Its seminar in July 1989 in response to 
the Peking massacre attracted considerable 
publicity and was well attended. A number of 
distinguished people, including academics, 
politicians, businessmen and military officers, 
are members of its Board of Directors. 



by Harriet Clompus 
London 
Address: 

301 Radnor House 
93 Regent St., London VV1R 7TE 

The Anglo-Hong Kong Trust 

Founded in 1988 by two British and two 
Hong Kong businessmen, the Anglo-Hong 
Kong Trust aims "to preserve the special 
relationship existing between Hong Kong 
and Britain for the last 150 years." It 
maintains strong links with Hong Kong and 
expatriate Hong Kong businessmen, and has 
Councils in both countries. The organization 
stresses the benefit of economic and cultural 
ties between Britain, Hong Kong and China 
and seeks to promote understanding through 
cultural and educational exchanges as well as 
through the sponsorship of regular seminars 
for businessmen and professionals from the 
three countries. 

One of its most important projects was 
the establishment of Hong Kong's first 
Business School of Management for 
Executives. The Trust also supports 
numerous cultural activities like the building 
of a new opera house in the Midlands and 
exchange programs that send British 
musicians to Hong Kong and Hong Kong 
artists to Britain. Recently in February 1991, 
the Trust organized a concert of leading 
young musicians from Hong Kong at the 
Royal Festival Hall in London. The event 
was attended by Princess Alexandra and 
Douglas Hurd, the Foreign Secretary. 
Address: 

58 St James's Street 
London SW1 

Honour Hong Kong 

This association was organized in 1989 
by a group of British businessmen with links 
to Hong Kong. Its major function is to 
promote awareness of the Hong Kong 
predicament and to pressure the British 
government for a fair and "honourable" 
immigration policy for the colony. 
Address: 

67-69 Whitfield Street 
London W1P5RL 

The Hong Kong Link 

Hong Kong Link is a London-based 
lobby group calling for the democratization 
of Hong Kong and for British passports for 



all Hong Kong citizens. It was set up in 1989 
by Gideon Lung, an Oxford postgraduate 
student from Hong Kong, after the Peking 
massacre. 

In general the British Chinese community 
has been notably quiet on the issue of 
passports for Hong Kong citizens. It has been 
ambivalent towards the prospect of mass 
immigration from Hong Kong because of the 
perceived threat that an influx of new 
Chinese talent would pose to their position in 
British society [The Times, April 5, 1990: 2]. 
Hong Kong Link, based within the Chinese 
community, has challenged the assumption 
that this was the attitude of all Chinese in 
Britain. 

Politicians 

The Hong Kong Immigration Act was 
extremely unpopular amongst right wing 
Tory MP's who viewed it as a relaxation of 
the tough immigration policy on which they 
had come to power. In language little short of 
racist, Conservative MP Tony Marlow 
registered his disgust at the "government 
gaily deciding to let another quarter of a 
million in." The leader of this "anti-Hong 
Kong group" was Norman Tebbit, former 
Conservative Party Chairman, who was 
particularly vociferous in his attacks during 
the passage of the Act through Parliament. 

Labour's official policy on Hong Kong 
has not been very consistent. In January 
1990, Gerald Kaufman, shadow foreign 
secretary, said regarding the immigration 
issue that a Labour government would allow 
only a few thousand Hong Kong Indians, 
war-widows and British intelligence staff to 
be given British citizenship. However, the 
party's official policy was to vote for the bill 
so that it would not be viewed as voting with 
the Tory right wing. 

The Liberal Democrats have claimed a 
special concern for Hong Kong and have 
stressed the promotion and safeguarding of 
democracy in the territory before and after 
1997. In part this position is due to the 
commitment of Liberal leader Paddy 
Ashdown, who was stationed in Hong Kong 
as an army officer and speaks Cantonese. In 
a recent letter to The Guardian (April 6, 
1991), five Liberal Democrats wrote on the 
occasion of Douglas Hurd's visit to China, to 
criticize the Conservative Government's 



14 UPDATE 



"lack of concern over the half-hcaned 
approach to democracy" that has been 
allowed to exist in Hong Kong. 

Support of individual MP's for Hong 
Kong can also be determined from their list 
of interests in Dodd's Parliamentary Year 
Book. These include: 

Robert J. Ad ley (Conservative, 
Christchurch) - member of the British 
Chinese Parliamentary Group. 

RL Hon. Jack Ashley (Labour, Stoke-on- 
Trent) - interest in China and Hong Kong. 

J.W. Bray (Labour, Motherwell S.) - 
Hong Kong and overseas development. 

J.R. Couchman (Conservative, 
Gillingham) -concern with Hong Kong and 
China. 

Robert Parry (Labour, Liverpool 
Riverside) - patron of the UN Association of 
Hong Kong 1976, Association for 
Democracy in Hong Kong 1980, Association 
of the Promotion of Public Justice in Hong 
Kong, 1984, and founder president of the 
Hong Kong Peace Association, 1986. 

Robert E. Sims (Conservative, 
Christchurch) - former director of Inchcape 
International, lists Hong Kong as an interest. 

P. Wall (Labour, Bradford North) - 
interests in Hong Kong and China. 

Commentators 

Bernard Levin, columnist in The Times, 
has written several articles criticizing the 
British government's handling of Hong 
Kong issues, in particular what he sees as the 
government's conciliatory stance towards 
Peking. 

Peter Jenkins, columnist in The 
Independent, has also been critical of the 
Hong Kong Immigration Act, which he 
dubbed "the prejudicial numbers game," and 
of the British government's lacklustre pursuit 
of democracy for Hong Kong. 

John Walden, former Director of Home 
Affairs in the Hong Kong government, has 
also been an outspoken critic of the U.K. 
government's Hong Kong policy. In addition 
to his book, Excellency, Your Slip is 
Showing! (1983), he has written several 
articles on the Immigration Act, which he 
described in the Times (June 29, 1989) as a 
"scheme which comes too late and offers too 
little," on Sino-British relations, and on 
democratic rights in Hong Kong. 



Winnipeg Hosts First National Meeting of Chinese 
Canadians Since 1975 

by Stephanie Gould 
Winnipeg 



On March 22-24, the Winnipeg Chinese 
Cultural and Community Centre hosted a 
symposium on challenges facing the Chinese 
Community in Canada in the 1990's. 
Discussion focused on immigrant youth 
issues ("Asian Gangs/High Achievers in 
Academic Institutes"), entrepreneur and 
investor immigrant issues, and the head tax 
redress question. It was the first national 
gathering of Chinese Canadians since 1975, 
when the community met in Vancouver to 
discuss the federal government's Green 
Paper on Immigration. 

According to Dr. Joseph Du, President of 
the Winnipeg Chinese Cultural and 
Community Centre, "This conference should 
have happened a long time ago. The Chinese 
community in Canada is growing rapidly, 
with a population of well over 700,000. 1 
found a need for the Winnipeg conference 
several years back, but I didn't get the same 
level of enthusiasm and government response 
until last year." 

Dr. Du believes immigration regulations 
must be changed to accommodate the 
realistic needs of immigrants from Hong 
Kong. He believes the regulation that 
requires immigrants to stay in Canada six 
months plus one day in order to qualify for a 
visa is forcing many immigrants to become 
"astronauts." "That is ridiculous. That's 
created a situation in which a lot of people 
are flying back and forth," says Dr. Du. 

Many immigrants have difficulty 
understanding the differences in labour and 
safety codes and zoning laws. Dr. Du, 
therefore, believes that immigration 
regulations should be relaxed to make it 
possible for investor immigrants to figure out 
how to set up a viable business before they 
are required to live here for prolonged 
periods of time. He recommends that the 
immigration process should be speeded up 
"so people who want to come can come. If 
Canada wants capital investment plus 
eventually for all these people to come here, 
then we have to review our policy and maybe 
make it a bit more appealing." 

Manitoba is not a favoured destination for 
investor immigrants from Hong Kong. 
However, Dr. Du maintains that will change. 
"I think that people will start moving away 
from Toronto because of saturation and the 



housing market. With traffic pollution, noise 
and security problems, Toronto is gaining a 
negative image." He would like to see a 
coordinated effort on the pan of the 
Manitoba government to encourage investors 
from Hong Kong to develop industries and 
create jobs. He hopes that future investment 
in Manitoba will lead to new, wealthy 
immigrants from Hong Kong creating jobs to 
help poorer Indochinese refugees. 

He would also like to see the Manitoba 
government spend money on outreach 
programs for immigrants. He believes 
education and social activities are important 
in the assimilation and settling of immigrants 
to Canada. 

The "head tax" issue and redress are 
important to the Winnipeg Chinese 
community, and there are diverse opinions 
on the issue. "Some younger groups are a 
little bit more militant to say the least," says 
Dr. Du. Recently, the Chinese Canadian 
National Council, Winnipeg Chapter, issued 
the following statement: "As Canadians, we 
recognize that our society can only be as 
sirong as our weakest link and that 
discrimination directed against any one 
group is an injustice to all." 

According to Dr. Du, "The new Hong 
Kong immigrants couldn't care less because 
they don't know Canadian history anyway. 
So the head tax and exclusion act are pretty 
foreign to them. And the boat people also 
don't feel very strongly because they don't 
know very much about it It's the older 
organizations such as the Chinese Benevolent 
Association, Chinese Freemason Society and 
some of the immigrants that came here in the 
1960's and 1970's that care." 

In 1984 a group of senior citizens in 
Winnipeg asked Dr. Du to speak on their 
behalf. "In fact, they turned in all their head 
tax certificates to me. We have over thirty 
pieces of original paper. Whether these are to 
be used for redress or put in an archive in the 
Chinese Cultural Centre will remain to be 
seen," said Dr. Du. 

At the conclusion of the Winnipeg 
conference, the Chinese community decided 
that demands for redress should not put too 
much emphasis on dollars and cents because 
Canada is in a recession and many Canadians 

Winnipeg Meeting, cont'd, page 16 



UPDATE 15 



Winnipeg Meeting, from page 15 

are losing their jobs. "We decided to ask for 
something more reasonable and acceptable to 
the Canadian public. Redress could be an 
apology, a guarantee that it won't happen 
again, the rewriting of Canadian history 
books in schools so that future generations 
will know about the head tax and exclusion 
act, or symbolic compensation," Dr. Du 
suggested. 

An expanded Chinese Canadian National 
Conference was held on May 18-19 at the 
downtown Holiday Inn in Toronto. The 
agenda was similar to that of the Winnipeg 
conference but included discussion on the 
Canadian constitution and the Chinese 
community's increased participation in 
Canadian politics. 



Two Project Workshops in June 



Director Lectures on 
Hong Kong 

Diana Lary recently gave two 
lectures in England on issues related to 
Hong Kong. The first, on the 
internationalization of Hong Kong, was 
at Chatham House (Royal Institute of 
International Affairs) on April 25. The 
second, on emigration from Hong 
Kong, was part of a conference on a 
Commonwealth issues research network 
held at Cumberland Lodge, Windsor 
Great Park from April 26-28. 



The second and third workshops for the 
Canada and Hong Kong Project are to be held 
in June. One workshop, "Dialogue on Hong 
Kong: Coverage of Hong Kong issues in the 
Canadian media," will take place in 
Vancouver at Simon Eraser University 
Harbour Centre on Saturday, June 15. This 
session will include over thirty invited 
participants from the English and Chinese 
media in Vancouver and Toronto as well as 
academics, members of the federal and 
provincial governments, free lance 
journalists, members of the Vancouver and 
Toronto police, and other specialists on Hong 
Kong/Canada relations. Four sessions at the 
meeting will cover the topics of Hong Kong 
investment and trade in Canada, the impact of 
immigration, political issues such as civil 
rights, and special issues in media coverage, 
including the role of the Chinese-language 
press and ethical issues in press reporting. 
The workshop is jointly sponsored by the 
Asia Pacific Foundation of Canada and the 
Joint Centre for Asia Pacific Studies. 

Another workshop focusing on 
international law, "Canada - Hong Kong: 



Some Legal Considerations," will be held at 
the University of Hong Kong on June 26 in 
conjunction with "Festival Canada 1991." 
(see p.2) This workshop is jointly organized 
by the Faculty of Law, University of Hong 
Kong and the Joint Centre for Asia Pacific 
Studies. Its convenor is Prof. William Angus 
of Osgoode Hall, York University. Five 
papers will cover the following topics: "Hong 
Kong's International Personality - Issues and 
Implications," by Dr. Roda Mushkat, Faculty 
of Law, Hong Kong University; "Coming 
and Going under Immigration and Refugee 
Law," by Prof. W. Angus; "Civil Proceedings 
Arrangements between Hong Kong and 
Canada: Service of Documents, Taking of 
Evidence and Enforcement of Judgments," by 
Prof. Maurice Copithome of the University of 
British Columbia and former Commissioner 
for Canada in Hong Kong; "Extradition 
Between Hong Kong and Canada," by Janice 
Brabyn, Faculty of Law, University of Hong 
Kong; and "Personal and Corporate Status in 
Hong Kong," by Philip Smart, Faculty of 
Law, University of Hong Kong. The papers 
will be published by the Project in the fall. 



Lu Ping: Assurances on Hong Kong's Future 



In an address to the Hong Kong 
General Chamber of Commerce on 
March 8th, Lu Ping, director of the Hong 
Kong and Macau Affairs Office of the 
State Council, reassured business people 
about the secure future of Hong Kong 



as a stable and prosperous financial and 
trade centre. He also promised a great 
future for Hong Kong as a "bridge, 
channel and window" between China and 
the rest of the world (Hong Kong Digest, 
March 15th, 1991). 



Conference on Human Rights and Democracy in China 



The second North American 
Community Based Organizations 
conference on human rights and democracy 
in China was held on April 6-7 at the 
University of Toronto. The conference was 
organized by the North American Coalition 
for Chinese Democracy and was opened by 
the mayor of Toronto, Art Eggleton. The 
keynote speaker was the Honourable Bob 
Rae, premier of Ontario. Ed Broadbent, the 
president of the International Centre for 
Human Rights and Democratic 
Development in Montreal, spoke on the 
Fifth Modernization in China - the 
introduction of democracy. Gordon Cressy, 
Vice-President, University of Toronto, 
spoke on behalf of the university. Duo Duo, 
poet in residence at York University, gave a 



poetry reading. The Coalition presented 
Human Rights awards to Tania Chen, an 
activist in New York, to Felice Gaer, of the 
International League for Human Rights, 
and, in absentia, to Ren Wanding, who is in 
prison in China. Citations were presented to 
the Toronto City Council, Amnesty 
International and Asia Watch. 

Three hundred delegates attended the 
conference, ninety of them from outside 
Toronto: there were delegates from the 
United Kingdom, the Netherlands, 
Switzerland, and Hong Kong. A resolution 
advocating human rights and democracy 
was passed at the end of the meeting. A 
connection was made by a number of 
speakers between the future human rights 
situation in Hong Kong and that in China as 



a whole. Szcto Wah, of the Hong Kong 
Alliance, called for people from Hong 
Kong living abroad to keep up the pressure 
for change in China. He stressed how 
crucial this would be for Hong Kong in the 
future. Ching Cheong, the chief editor of 
Contemporary News, Hong Kong, talked 
about the "demonstration effect" of human 
rights activity in Hong Kong for the future 
of China. He encouraged emigrants to keep 
in touch with what is going on in Hong 
Kong and to work for human rights there. 
He saw a pattern of human rights advocacy 
moving from Chinese abroad to Hong 
Kong, then on to Guangdong and finally to 
the rest of China. 




7f CANADA AND HONG KONG UPDATE 



Number 5 



The first of two festivals celebrating the 
Canada/Hong Kong relationship was 
held this year. During his visit to Canada 
in May, 1990, the governor of Hong 
Kong, Sir David Wilson, and Prime 
Minister Brian Mulroney agreed to hold 
reciprocal festivals. Festival Canada was 
held in Hong Kong in May and June. 
1991: Festival Hong Kong will be held 
in Canada next year. 

Festival Canada '91 was composed of 
a large number of events coordinated b\ 
the Canadian Commission: the chairman 
of the Board of Festival Canada was 
John Higginbotham. the 
Commissioner for Canada. 
There was active involvement in 
planning the Festival from provincial 
offices in Hong Kong, community asso- 
ciations, 15 alumni associations of 
Canadian universities and 20 corpora- 
tions. Funding for the Festival was 
largely through private sponsorship: the 
Canadian Government provided 20% of 
the total. 

Much of the Festival w as made up of 
formal events, but there were also con- 
tinuing activities which ran throughout 
the two weeks of the Festival and gave 
prominence to Canada in many parts of 
Hong Kong. 



FESTIVAL CANADA '91 



Festival Events 

MAY 22nd-26th 

The visit of Prime Minister Mulroney to 
Hong Kong, to launch the Festival. (See 
Update, 4. Spring 1991.) 

JUNE 19th 

The official opening of the heart of 
Festival Canada took place at a luncheon 
organized by the Canadian Chamber of 
Commerce in Hong Kong. The speakers 
were John Higginbotham. Commissioner 
for Canada, and the Governor of Hong 
Kong, Sir David Wilson. Both speakers 
referred to the overall theme of the 
Festival. Canada and Hong Kong: 
Friends Yesterday, Today and 
Tomorrow. Sir David spoke of the "cele- 
bration of a very healthy relationship", and 
the "demonstration of ties that bind." (see 
his Speech, p. 3) 

JUNE 20th 

The Asia Pacific Foundation of Canada 

held a symposium on An Enduring 
Partnership, Planning the Co-prosperity 
of Canada and Hong Kong. The day-long 
series of panels looked at the economic 
interrelationships between Canada and 
Hong Kong. It was coordinated by Yao 
Wei. Asia Pacific Foundation, Vancouver. 
The Honourable David Lam. Lieutenant 
Governor of British Columbia, spoke at the 



FESTIVAL 

CANADAO 



FALL 1991 



firj * * In / I 

CANADA AND HONG KONG 
/ riendt Yesterday, Today at 



luncheon. His theme 
was that the grow- 
ing relationship 
between 
Canada and 
Hong Kong 
was a win- 
win situation, 
and that the 
relationship. 
it carefully 
nurtured, would bring great benefit to both 
sides. Victor Li. senior vice-president of 
Concord Pacific Holdings, spoke of the bene- 
fits of investment in Canada for various types 
of Hong Kong investors. 

JUNE 20th 

A Gala Fashion Show featured styles by a 
number of Canadian designers, including 
Alfred Sung, a native of Hong Kong. About 
three hundred people were at the show and 
the dinner which preceded it. 

JUNE21st-22nd 

A three day conference on the Hong Kong 
Bill of Rights Conference was organized by 
the Faculty of Law. University of Hong 
Kong. The Canadian Government was one of 
the conference sponsors and arranged the 
\ isits of a number of Canadian legal experts. 
The Canadian contributors were Madam 

Festival Canada cont'i page 2 



IN THIS ISSUE: 

Festival Canada '91 1 

Hong Kong Festival in Canada '92 2 

Sir David Wilson's Speech 3 

Comments by John Higginbotham 3 

per 

F1029.5 

H6 C36 



Reporting Crime Statistics 4 

Controversy o\er Dim Sum Diaries 5 

Regional Variations 6 

Hong Kong Students in Ontario 7 

Hong Kong's New Manufacturing Base 8 

Japan & Hong Kong Trade 9 



PADS Agreement I 

Hong Kong Elections 12 

Emigration from Hong Kong 12 

Choosing to Stay Behind 12 

Associations 14 

Conferences IS 



Justice Bertha Wilson (former judge of the 
Court of Appeal, Supreme Court), the Hon. 
Mr. Justice Walter Tamopolsky (Ontario 
Supreme Court of Appeal), Professor 
Rosemary Cairns Way (University of 
Ottawa) and Chief Superintendent Patrick 
Cummins (RCMP, Vancouver). They spoke 
on various aspects of the implementation of 
the Charter of Rights in Canada, and the 
lessons there might be for Hong Kong. (See 
Rights Conference, p. 18.) 

JUNE 22nd 

The Colourful Canada Ball was arranged 
by the Canadian Chamber of Commerce. It 
was attended by about 400 people. 

JUNE 25 th 

A seminar on Legal Issues between Canada 
and Hong Kong was put on by the Canada 
and Hong Kong Project and the Faculty of 
Law, University of Hong Kong. (See Legal 
Workshop, p. 19) 

JUNE 30th 

The Celebrate Canada Picnic was held at 
Happy Valley Racecourse. The event was 
widely advertised, and anyone who wanted 
to celebrate Canada was invited. About 
28,000 people came. 

JULY 1st 

The last event of the Festival was the dedica- 
tion of a totem pole (p. 1), carved by 
Tahltan-Tlingit artists Dale and Terry 
Campbell, in Kowloon Park, as an enduring 
symbol of the Festival. The pole had been 
presented by Prime Minister Mulroney on 
May 24th to Sir David Wilson. The dedica- 
tion involved a Tshimishan ceremony, 
attended by First Nauon representatives in 
traditional costume. 

Cultural Events 

The Festival included a number of cul- 
tural events spread out through the Festival. 
There was a cinema festival of ten Canadian 
films. Bethune, the Making of a Hero, a 
PRC/Canadian co-production, had its Hong 
Kong premiere. There were performances 
by Les Grands Ballets Canadiens, by cel- 
list Ofra Harnoy, by dancer Margie Gillis, 
and by pianist Jean-Paul Sevilla. 

Huang Zhongyang's pictures, exhibited 
at the Cultural Centre, caused considerable 
interest with their novel combination of 
Chinese and Western themes. Some of the 
most striking paintings are based on 



Western paintings, transposed to a Chinese 
setting. The Last Supper is a variant of 
Leonardo's work, but with Christ and the 
Disciples Chinese and a portrait of Mao 
Zedong on the wall behind them. Butterfly 
in a Dream is a female nude painted from 
the rear, gazing at a picture of Chairman 
Mao. Huang immigrated to Canada from 
Guangdong in 1984. 

There were also exhibitions of paintings 
by Karen Kulyk and of pottery by Laura 
Wee Lay Laq. 

Many prominent Canadians were in 
town for the Festival. The Honourable 
David Lam, Lieutenant Governor of British 



Columbia, was widely interviewed. Art 
Eggleton, the mayor of Toronto, attended a 
number of events. Miss Canada, Leslie 
McLaren, was in Hong Kong for much of 
the Festival and christened a new Canadian 
Airlines International aircraft. 

Business Meetings 

Several business organizations held 
meetings to coincide with the Festival. The 
All Asia Canadian Business Association 
held its annual meeting, as did the Hong 
Kong Canada Business Association. The 
government of British Columbia mounted a 
British Columbia Film Industry Seminar. 




Chinese Canadian mounties 



Hong Kong Festival in Canada '92 



As a counterpart to the recent Canada 
Festival in Hong Kong, a reciprocal event is 
now being planned to take place in cities 
across Canada for the fall of 1992. In addi- 
tion to the Hong Kong Government and the 
Urban and Regional Councils, a number of 
associations are involved in the organization 
of events. They include the Hong Kong 
Trade Development Council, the HK Tourist 
Association, the Hong Kong-Canada 
Business Association, and other major orga- 
nizations in Hong Kong and Canada as well 
as local community leaders of the Chinese- 
Canadian community. 

Like Festival Canada, the Hong Kong 
Festival will feature a wide range of cultural, 
sporting, social and business events with the 
objective of promoting better integration of 
the Hong Kong Chinese into Canadian com- 
munities. According to James So, Hong 
Kong Secretary for Recreation and Culture, 



the theme of the festival will be "Hong Kong 
and Canada: Friends Across the Ocean." 
Major highlights will include trade and busi- 
ness promotion, cultural performances, food 
festivals, films shows, exhibitions related to 
Hong Kong and recreation and sports events. 
It is also proposed to celebrate the Lantern 
Festival which falls within this time period. 
In addition, cultural galas will be organized 
to raise funds for local Canadian charities. 
The festival will occur in a number of cities 
with the main events in Toronto and 
Vancouver. 

The Canada and Hong Kong Project is 
involved in planning events for Toronto. One 
proposed activity is a continuation of the 
Legal Issues Workshop held last June in Hong 
Kong (see p. 19). Topics may include a com- 
parison of the Canadian Charter with the new 
Hong Kong Bill of Rights. 



2 UPDATE 



"Last month the Prime Minister of 
Canada came to Hong Kong as a very wel- 
come guest. He launched Festival Canada 
'91. The finishing touches have now been 
made. The entertainers have arrived. The 
exhibitions have been set up. The heart of 
the festival is about to begin. 

Festival Canada is a celebration of a very 
healthy relationship. It is a demonstration of 
the common interests which bind our two 
communities together. It is also an enter- 
tainment, bringing to Hong Kong examples 
of Canada's heritage, its culture and the 
way Canadians enjoy themselves. 

I am very pleased that Hong Kong is 
hosting an important festival of celebration 
with such a friend as Canada. Hong Kong 
has much to celebrate. It also has need of 
friends. We face a number of challenges. It 
is good to enjoy what is going right, while 
tackling what still needs to be put right. 

The contrast between some of the more 
alarmist news stories about Hong Kong and 
what is actually happening here may strike 
visitors from Canada more forcibly than 
those of us who live in this unique territory. 
But we too can sometimes lose sight of the 
broader picture. We are sometimes prone to 
being too obsessed with whatever is our 
immediate problem. We need to remind 
ourselves from time to time about the 
broader picture. 

Part of this larger picture is that Hong 
Kong is not just a place with problems. 
Every place in the world has that in one 
way or another. Hong Kong is a place 
which demonstrated success - visible suc- 
cess. Success against the odds. Not every- 
where can say that. 

In a sense, Hong Kong's success is the 
reason why most people are here - Chinese 
from the Mainland who themselves or their 
families before them came to find a new 
life, or westerners attracted by the vibrancy 



Sir David Wilson's Speech 
Opening of Festival Canada '91 

of Hong Kong's unique blend of cast and 
west. That success has meant for the people 
of Hong Kong a real growth in incomes. 
This growth has averaged over 3% a year 
for the past 15 years. It has meant new 
housing, schools, hospitals, parks, museums 
and the amenities of modem life. And it has 
meant the transformation of this city from a 
manufacturer of cheap products to a finan- 
cial, business, transport and telecommunica- 
tions centre serving the region and the 
world. 

Success has also meant a rapid growth in 
Hong Kong's commercial and trading links. 
We have played an important part in the 
tremendous growth of trans-Pacific trade. 
And we have made a substantial contribu- 
tion to the development of southern China's 
economy. Some of you will be familiar with 
the statistics. But they are worth repeating. 
About two million workers in Guangdong 
Province are employed by Hong Kong 
enterprises, over twice the size of our own 
manufacturing workforce; and about 70% of 
overseas investment in China derives from 
Hong Kong. What is less well known is just 
how successful this process has been. The 
value of exports from Guangdong Province 
grew by over 40% last year alone. The com- 
bined talents of Guangdong and Hong Kong 
is proving a powerful combination. The 
potential is tremendous. With southern 
China growing fast Hong Kong will have a 
major role to play for many years to come 
as the gateway to this area of rapid econom- 
ic development. 

No wonder the Canadian community 
here is large - as many as 35,000 people - 
and that Canadian investment in Hong 
Kong and southern China is growing. 
Canadian businessmen can see the potential. 
They see that, whatever the immediate 
political concerns may be, the opportunities 
are there too; and the long-term prospects 



for economic growth are at least as good in 
Hong Kong as anywhere in the world. 

We welcome this Canadian involvement. 
And we welcome the very practical interest 
which Canada has taken in Hong Kong. The 
Prime Minister of Canada's visit to Hong 
Kong last month was a most welcome 
demonstration of that interest. In his speech- 
es here and in his meetings with me, he left 
a strong impression of the goodwill towards 
Hong Kong that exists in Canada and of 
Canada's conviction of the value to the 
international community of Hong Kong's 
continued success. 

We treasure this goodwill. We recipro- 
cate the feelings of friendship. And we look 
forward to showing Canadians more about 
Hong Kong next year. Some of you who are 
visiting from Canada are already involved 
in the planning for the Hong Kong Festival 
which will take place in cities across 
Canada in the autumn of 1992. That will be 
our opportunity to give pleasure and enjoy- 
ment in return; our chance to demonstrate 
how much Hong Kong has to offer. 

But this year it is Canada's turn. I con- 
gratulate the organizers of Festival Canada 
on putting together such an impressive 
range of entertainment It represents a great 
deal of effort, imagination and financial 
support. It is a demonstration of the way the 
Canadian community and Canadian busi- 
nesses are so ready to participate in Hong 
Kong life. And it says much for the dedica- 
tion and efficiency of the Commission for 
Canada which has pulled together these 
many contributions to such good effect. 

I wish Festival Canada a successful cele- 
bration of its central theme "Canada and 
Hong Kong: friends yesterday, today and 
tomorrow." 



Comments by John 

Higginbotham 

Commissioner for 

Canada 

Festival Canada Picnic, 

June 30, 1991 



"I'm happy to welcome you here today 
as we highlight what I believe is one of the 
most exciting and multifarious events of 
Festival Canada '91 - the Festival Canada 
Picnic. 

If I were to search for any single word 
that might sum up the "why" and "what" of 
the more than 60 wide-ranging events, dis- 
plays, activities and exhibitions that make 
up Festival Canada '91, that word would 



simply be "People." 

Based on the theme "Canada and Hong 
Kong; Friends Yesterday, Today and 
Tomorrow," Festival Canada is a vibrant 
and wholehearted celebration of the grow- 
ing cultural, trade and personal ties that 
bind the people of Canada and the people of 
Hong Kong. 

The idea for Festival Canada '91 origi- 

John Higginbotham con't page 4 



UPDATE 3 



John Higginbotham. from page 3 

nated when two people, Prime Minister 
Brian Mulroney and the Governor, Sir 
David Wilson, agreed that the very special 
relationship between Canada and Hong 
Kong is something worth celebrating, first 
with a festival in Hong Kong in 1991, and 
then with reciprocal festivals in cities across 
Canada in 1992. 

The reality of Festival Canada '91 came 
about through the planning and organising 
and hours of labour of hundreds of people, 
members of the Canadian community in 
Hong Kong, who worked diligently to pro- 
duce a Festival that brings the culture and 
lifestyle and very best of Canada to the 
heart of the territory. 

That reality is a Festival that all the peo- 
ple of Hong Kong, no matter what their age 
or interest, can join in and be part of. 

And nowhere is that people-to-people, 
comunity-to-community joining more evi- 
dent that in the Festival Canada Picnic. 

The biggest single event of Festival 
Canada '91, the day-long Picnic, features 




John Higginbotham 

live entertainment, local celebrities, lucky 
draws, games, spoils, displays, activities for 
children and, of course, hearty Canadian 
picnic fare like the Pancake Breakfast, 
Western Barbecue, and delectable selec- 
tions at the Provincial Food Tents. 



In short, Canada is throwing the biggest 
party ever for Hong Kong and it guarantees 
fun for every member of the family, with 
everything from arts and crafts, clowns and 
street theatre, art in the park, hot air balloon 
rides, and a variety of games booths with 
proceeds going to charity. 

The Festival Canada Picnic is the 
climax of Festival Canada '91, which was 
officially launched by Prime Minister 
Mulroney and Sir David on May 24 during 
Mr. Mulroney's visit to Hong Kong. 

The seed of their idea and the caring of 
many people, working individually and 
through organisations such as the Canadian 
Club, the Canadian Chamber of Commerce, 
the Chinese Canadian Association, and the 
Canadian University Association, has 
grown into a wonderful celebration for all 
of us to enjoy. 

The Festival Canada Picnic is a colourful 
crown for that celebration and a thoroughly 
entertaining day for people everywhere." 



Reporting Crime Statistics 



The question of whether or not crime 
statistics in Toronto should be kept on the 
basis of ethnic origin has caused a major 
disagreement within the Chinese Canadian 
community. 

Sergeant Benjamin Eng, a member of the 
public affairs department of the Metro 
Police, told the Toronto Crime Enquiry on 
July 24th that two-thirds of offenses com- 
mitted in Toronto in 1990 by people of 
Asian origin were perpetrated by refugees 
from Vietnam and China. (The number of 
crimes was 3,000, out of a total of 273,706 
offenses committed in Toronto in 1990; in 
1 ,500 cases those charged were Vietnamese 
refugees, in 500 cases PRC refugees). He 
called for a tightening of the refugee deter- 
mination procedures, so that "phoney 
refugees" could not abuse the system. The 
PRC is currently the largest single source of 
refugee claimants in Canada. 

Eng was taken to task by Susan Eng (no 
relation), head of the Metro Toronto Police 
Services Board, for "wilful and direct con- 
travention" of the police policy that no 
crime statistics should be compiled or pub- 
lished on the basis of ethnic origin. Though 
Sergeant Eng gave his views as a private 



citizen, he was given a formal reprimand by 
police authorities. The reprimand will stay 
in his file for two years. 

Reaction to the statements of the two 
Engs from the Chinese and Vietnamese 
communities was mixed. Some spokesmen, 
including representatives of the Vietnamese 
Association and the Chinese National 
Council, condemned Benjamin Eng and 
accused him of spreading a negative picture 
of Asian communities in Canada. Others 
commended him for speaking out about an 
issue which concerns many Asian 
Canadians. Those who commended him 
included many of the professional and busi- 
ness groups and the Eng Clan organization. 
On August 13th, a group of representatives 
of business and professional Chinese 
Canadian organizations presented a motion 
to the Police Services Board asking that the 
policy on crime statistics kept by ethnic ori- 
gin be reviewed. They were supported by 
Chief of Police William McCormack. Six 
days later, another group of representatives 
of the Chinese community held a news con- 
ference to oppose keeping crime statistics 
by ethnic origin, on the grounds that it 
would not be helpful in combatting crime 



and that it might foster racism. On August 
23rd, the Police Services Board decided not 
to change its current policy. 

Benjamin Eng's concern for precision 
about the immigration status of criminals of 
Asian origin stems from the wide-spread 
coverage given recently to "Asian crime," 
which tends to lump all people of Asian ori- 
gin together, whether they are native-born 
Canadians or immigrants from China, Hong 
Kong, Vietnam or Southeast Asia. This cov- 
erage can be inflammatory, as evident in the 
March 25, 1991 issue of Maclean s maga- 
zine whose cover in red and gold had 'TER- 
ROR IN THE STREETS' emblazoned 
across it in 1 V 2 inch letters and a posed pic- 
ture of a young Asian man holding a gun. 
Eng spoke at length on this subject at the 
media workshop run in Vancouver by the 
Canada and Hong Kong Project, in conjunc- 
tion with the Asia Pacific Foundation of 
Canada. The transcript from the workshop 
will be available soon and can be purchased 
from the Joint Centre for Asia Pacific 
Studies. 



4 UPDATE 



Controversy Over "Dim Sum Diaries" 



"Dim Sum Diaries" is a radio series pro- 
duced by the CBC Vancouver Station. Each 
of its five parts - "Foreign Accents," 
"Perfect Class," "Mah Jong," "The 
Sequoias" and "Dim Sum" - is about 15 
minutes long when broadcast The series is 
about local attitudes towards recent Hong 
Kong immigrants and was meant to expose 
racist views and stereotypes. The most con- 
troversial part, "The Sequoias," was based 
on an actual incident which took place on 
Vancouver's Westside when a Chinese- 
Canadian cut down two one-hundred-year 
old sequoia trees. 

The series, except for "The Sequoias," 
was first broadcast in February 1991 on 
national CBC radio. In March and April the 
whole series was aired in the Vancouver 
area on five Saturday mornings. 

The first negative response to the radio- 
play came from Vancouver Sun columnist, 
Nicole Parton. Her article on April 22nd 
drew public attention to the program and 
declared that the play was a "racist dia- 
tribe." Leaders of the local Chinese commu- 
nity sent complaints and letters of protest to 
CBC. Bill Yee, president of the Chinese 
Benevolent Association, declared, "I think it 
is the worst kind of stereotyping I have 
heard in a long time." 

SUCCESS (United Chinese Community 
Enrichment Services Society) president, 
Maggie Ip, wrote a letter to CBC's director 
of radio, Robert Sunter, arguing that the 
play had promoted ethnic stereotyping and 
reinforced racial hatred. She quoted 
abstracts from "Dim Sum Diaries" to sup- 
port her view. Such comments as "this 
Hong Kong voodoo thing," which refers to 
Fengshui, is an attack on some aspects of 
Chinese culture and traditioa She maintains 
that a quote from "The Sequoias" - "at that 
moment I just wanted to take that chain saw 
and go up to Chang's white Jaguar and cut 
the car in two, and it would have been better 
still if I had done it when Chang was inside" 
- is an inspiration to violence and racial 
hatred. Finally, "he likes Chinese women so 
much; he says we know how to please a 
man" is a comparison of Chinese immigrant 
women to stereotypes like Suzy Wong. 
Besides such complaints from leaders of 
major Chinese-Canadian organizations, 



by Hugh Xiaobing Tan 
Vancouver 

some politicians elected from the ethnic 
community also expressed their criticism of 
the play. 

In response to such criticisms, the author 
of the series, Mark Leiren-Young, defended 
his work in an interview with a Vancouver 
Sun reporter. He declared his intention was 
to promote better understanding between 
different communities and not the reverse. It 
was very upsetting for him to be charged 
with intentionally perpetuating negative 
stereotypes of Chinese-Canadians. He 
emphasized that "Dim Sum Diaries" is not 
five separate plays but five scenes in one 
work, culminating with "Dim Sum." His 
final episode concludes with the message 
that everyone can overcome cultural differ- 
ences and live together. 

While Leiren-Young defended his play, 
CBC attempted to ease the anger of the 
Chinese community. Robert Sunter read a 
public statement to a meeting of the Chinese 
Benevolent Association on May 5th. He 
said the intention of broadcasting the play 
was to "bring to the surface issues and atti- 
tudes concerning the Chinese community," 
but now they realized "the series has 
offended some Canadians of Chinese ori- 
gin." He offered his apology and expressed 
regret that CBC's effort to build bridges 
between communities had been so pro- 
foundly misunderstood. 

Sunter's apology, however, was consid- 
ered unacceptable by Chinese-Canadian 
leaders. Lilian To, executive director of 
SUCCESS, said, "The feeling is that it [the 
statement] is not an acknowledgment that 
the programs were undesirable." Maggie Ip 
declared, "We are not questioning their 
intentions; very often, we do have good 
intentions but the effect may come out very, 
very different." In order to put more pres- 
sure on CBC, more letters of complaint 
were written to the prime minister, all mem- 
bers of Parliament, CBC National 
Headquarters and the Canadian Radio- 
Television and Telecommunications 
Commissioa A protest petition was also 
circulated among the ethnic Chinese com- 
munity, indicating the undersigned "strong- 
ly protest the broadcasting of the Dim Sum 
Diaries by CBC which provokes racist vio- 
lence to and hatred of the Chinese commu- 



nity in Canada." More than 1,000 signatures 
were collected on the petition. At the same 
time, Vancouver East MP Margaret 
Mitchell complained to both the CRTC and 
the Canadian Race Relations Foundation 
that the radio-play reinforced negative atti- 
tudes among listeners. 

The issue was also brought to the 
National Congress of Chinese Canadians, 
held in Toronto in mid-May. A resolution 
on the matter was passed: 1) CBC should 
not repeat such a mistake in the future; 

2) CBC should apologize openly in major 
newspapers and in CBC radio broadcasting; 

3) CBC should report and explain the whole 
event to CRTC; and 4) CBC should produce 
another series emphasizing the positive 
images of Chinese-Canadians. SUCCESS is 
now negotiating with CBC to implement 
this resolution, and a final agreement is 
expected by the end of October. 

While the majority of Chinese- 
Canadians opposed the radio play, there 
were also some who disagreed with their 
indictment. Mr. Xu Xin, a well-known jour- 
nalist who immigrated from Hong Kong, 
wrote an article for the World Journal 
Weekly, the popular newspaper distributed 
free in the Chinatown area. Entitled "Is it 
Racism or Overdefensiveness?", the article 
defended the CBC broadcast and mentioned 
that the author had carefully read the tran- 
script of Dim Sum Diaries and translated it 
into Chinese. He declared that he could find 
nothing that could be labelled "racism" 
Instead, he found only some conflicts 
between different cultures and values, 
which he considered quite normal for a 
society like Canada. He wrote these con- 
flicts should be solved with the passage of 
time and by better communication between 
communities. Regarding the abstracts 
alleged to reinforce racial hatred, the writer 
pointed out that literature is not a documen- 
tary report and allows some exaggeration. 

The whole issue surrounding Dim Sum 
Diaries has yet to be settled. However, the 
controversy aroused by the event has pro- 
vided much food for thought for the public 
and policy-makers concerning the issue of 
properly building a multicultural society. 



UPDATE 5 



Regional Variations in Hong Kong Immigration 



When immigrants leave their home 
countries for Canada, they are asked to indi- 
cate their destination in Canada. There is no 
firm way of establishing whether they actu- 
ally stay in their stated destinations, but the 
statement of intention is generally assumed 
to be a fairly reliable guide to place of set- 
tlement. In 1988, 58% of immigrants from 
Hong Kong were destined for Ontario, in 
1989, 54%, and in 1990, 55%. In 1988, 
22% went to British Columbia, in 1989, 
24%, and in 1990, 26%. The rise in land- 
ings in Quebec between 1988 (6%) and 
1989 (10%) was not sustained; in 1990 the 
Quebec percentage was 7%. Alberta 
accounted for 10% of immigrants in 1988, 
8% in 1989 and 9% in 1990. 

Permanent Immigrants Admitted 
from Hong Kong, by Province 1 



1988 



1989 



1990 



Alberta 


2257 


1623 


2535 


British Columbia 


5188 


4849 


7660 


Manitoba 


409 


267 


340 


New Brunswick 


33 


41 


39 


Newfoundland 


30 


28 


17 


NWT 


7 


9 


17 


Nova Scotia 


63 


71 


95 


Ontario 


13527 


10812 


16032 


PEI 


5 


3 


12 


Quebec 


1380 


1912 


1939 


Saskatchewan 


390 


319 


342 


Yukon 


4 





1 


Total 


23293 


19934 


29029 



Within each province, movement of 
immigrants from Hong Kong has been over- 
whelmingly to the major cities. In 1988, 
Toronto accounted for 1 1 ,780 of the 13,527 
immigrants to Ontario (87%), in 1989 for 
9,329 of 10,812 (86%), and in 1990 for 
13,806 of 16,032 (86%). There is an even 
more pronounced pattern in British 
Columbia. In 1988, 4,965 of 5,188 landings 
in British Columbia were in Vancouver 
(95%), in 19894,661 of 4,849 (96%), and 
in 1990 7,471 of 7,660 (97.5%). 



1. These statistics are supplied by the Immigration Statistics 
Division, Employment and Immigration Canada. Slight 

ame statistics published in earlier Updates reflect 
r corrections. 



by Diana Lary 
Toronto 



n"-t 



v rv 



Permanent Residents Admitted from 
Hong Kong, by Urban Area 

1988 1989 1990 Total 



Calgary 

Edmonton 

Halifax 

Montreal 

Ottawa 

Quebec 

Regina 

Saskatoon 

Toronto 

Vancouver 

Winnipeg 

Other 

destinations 



1078 

1055 

52 

1347 

139 

2 

188 

91 

11780 

4965 

386 



741 

791 

63 

1837 

228 

15 

140 

54 

9329 

4661 

225 



1302 

2960 

77 

1881 

325 

18 

161 

115 

13806 

7471 

311 



3121 

2960 

192 

5065 

892 

35 

489 

260 

34915 

17097 

922 



2010 1850 2448 6308 



Total 



23293 19934 29029 72256 



Amongst cities, Toronto has been con- 
sistently the major destination. Over the 
past three years, Toronto has been the desti- 
nation of 34,915 of the 72,256 immigrants 
from Hong Kong, or 48%. In the same peri- 
od, Vancouver has taken 24% of all immi- 
grants from Hong Kong. 

Major regional variations become appar- 
ent when we look at destinations in terms of 
immigrant class. (In the following tables, 
figures for each class include principal 
immigrant and direct dependents.) 
Immigrants to Montreal are concentrated 
heavily in the business classes 
(entrepreneur, investor and self-employed). 
The percentage of business class immi- 
grants destined for Montreal in 1988 was 
76%, while for all Canada it was only 19%. 
In 1989 the figures were 82% and 25%, in 
1990 77% and 23%. The proportions of 
family and independent immigrants are 
lower than for other parts of Canada. In 
1988 for Canada as a whole, 59% of Hong 
Kong immigrants were in the independent 
class, but in Montreal, 14%. In 1989 the fig- 
ures were 43% and 9%, in 1990 44% and 
13%. 



Montreal, Permanent Immigrants 
from Hong Kong, by Class 



1988 



1989 



1990 



Family 

Conv. refugee 

Designated 

AssL relative 

Entrepreneur 

Investor 

Self-employed 

Retired 

Independent 



164 

9 
17 
998 
23 
9 

28 
194 



100 

5 

22 
1167 
291 
46 
36 
170 



125 

1 



17 

1129 

301 

19 

49 

240 



Total 



1347 



1837 



1881 



In Toronto, the pattern was very differ- 
ent, with immigrants concentrated heavily 
in the independent class. In 1988 72% of 
immigrants were in the independent class 
and 10% in business. In 1989 the figures 
were: independent 61% and business 13%. 
In 1990 they were: independent 57% and 
business 12%. In Toronto, the proportion of 
independents has declined over time, while 
the proportion of relatives (family and 
assisted relatives) has grown: 1988 13%; 
1989 19%; and 1990 27%. 

Toronto, Permanent Immigrants by 
Class 



1988 



1989 



1990 



Family 


1208 


1386 


2449 


Conv. refugee 





2 





Designated 


5 


6 


6 


AssL relative 


291 


346 


1267 


Entrepreneur 


1014 


840 


856 


Investor 


155 


281 


743 


Self-employed 


62 


86 


64 


Retired 


561 


715 


606 


Independent 


8484 


5667 


7815 


Total 


11780 


9329 


13806 



Vancouver's intake of immigrants has 
also contained a high proportion of indepen- 
dents, though not as high as Toronto. In 
1988 independents made up 48% of all 
Hong Kong immigrants and 
business 27%. In 1989 the figures were 
independent 37%, business 36%, and in 

Hong Kong Immigration cont'd page 7 



6 UPDATE 



Hong Kong Students In Ontario 



Large numbers of students from Hong 
Kong have entered schools in Ontario at 
both the elementary and secondary levels in 
recent years. According to statistics collect- 
ed for the Ontario Ministry of Education, 
the enrolment of students from Hong Kong 
has increased for the period from 1987-88 to 
1989-90, from 2337 to 2710 in elementary 
public and separate (Roman Catholic) 
schools and from 2356 to 3214 in secondary 
public and separate schools. 

Students from Hong Kong Entering 
Ontario Schools (1987-88 to 1989-90) 



Year 



Public Separate 

Elementary Secondary Elemenlary Secondary 



1987-88 


1847 


2224 


490 


132 


1988-89 


1582 


2201 


378 


144 


1989-90 


2238 


2963 


472 


251 



The apparent decline for the year 1988- 
89 can be explained by the drop in the total 
number of landings in Canada of Hong 
Kong immigrants from 23,286 in 1988 to 
19,994 in 1989. The corresponding numbers 
of landings in Ontario are 13,523 in 1988 



Hong Kong Immigration from page 6 




1990, independent 35%, 


business 36%. 


The proportion 


of relatives increased 




(1988 15%; 1989 16%; 


1990 19%) though 


not as rapidly as in Toronto. 




Vancouver, by Class 








1988 


1989 


1990 


Family 


582 


588 


1081 


Conv. refugee 





1 





Designated 


6 


8 





AssL relative 


155 


141 


423 


Entrepreneur 


1064 


1317 


1554 


Investor 


257 


326 


1046 


Self-employed 


30 


49 


93 


Retired 


482 


522 


645 


Independent 


2389 


1709 


2629 


Total 


4965 


4661 


7471 



by Paul L M. Lee 
Toronto 

and 10,793 in 1989. [Sec Canada and Hong 
Kong Update, Spring 1990.1 

It should be noted that statistics on stu- 
dents coming to study in Ontario public or 
Catholic schools for a particular year are 
gathered according to their location of study 
in the previous year. Hence, a Hong Kong 
student who is studying for the second year 
in Ontario will not be regarded as having 
come from Hong Kong but from Ontario. 
Furthermore, there is no distinction between 
visa students and those with immigrant sta- 
tus. These facts affect the statistics on Hong 
Kong students, as those originally from 
Hong Kong are included with students from 
Ontario in successive years. 

However, statistics for students enroled 
in private schools are collected by province 
or country of permanent residence. These 
indicate that students from outside the 
province studying in Ontario private schools 
come mainly from Hong Kong, Quebec and 
China. (Statistics from the Ministry of 
Education do not differentiate between stu- 
dents coming from Mainland China or 
Taiwan. It is presumed the majority of stu- 
dents in the China category are from Taiwan 
or Southeast Asia.) The enrolment of stu- 
dents from Hong Kong is increasing from 
1038 in 1988 to 1685 in 1990, which repre- 
sents an increase of 62% within two years. 
These are all visa students. 

Ontario Private School Enrolment by 
Province or Country of Permanent 
Residence (1988-90) 



Year Hong Kong China 



Quebec 



1988 


1038 


107 


425 


1989 


1246 


106 


450 


1990 


1685 


208 


508 



Students from Hong Kong coming to 
study in Ontario tend to concentrate in 
Metro Toronto and its neighbouring regions. 
For 1989-90, over 4000 elementary and sec- 
ondary students of new immigrants from 
Hong Kong enroled with schools in the city 
of Metro Toronto and Peel and York 
Regions. 



Students from Hong Kong 
Entering Public Schools in Metro 
Toronto and Neighbouring Regions 
in 1987-88 to 1989-90 

City/Region Elementary Secondary 

87- 88- 89- 87- 88- 89- 
88 89 90 88 89 90 

East York 30 19 37 25 23 31 

Etobicoke 12 23 17 26 23 73 

North York 431 244 351 5% 558 572 

Scarborough 715 677 840 508 511 517 

Toronto 212 201 238 628 651 1043 

York 10 8 4 13 11 17 



Metro 1410 


1172 


1487 


17% 1777 2253 


Peel Region 116 


130 


206 


56 90 175 


York Region 177 


182 


361 


112 112 233 



The number of students entering separate 
schools is limited because these schools 
give preference in admission to students of 
Catholic faith. These students enter schools 
mainly in Metro Toronto and neighbouring 
regions. 

Students from Hong Kong 
Entering Separate Schools in Metro 
Toronto and Neighbouring Regions 
in 1987-88 to 1989-90 

School Board Elementary Secondary 

87- 88- 89- 87- 88- 89- 
88 89 90 88 89 90 



Metro 315 


214 


262 


21 


22 


50 


Dufferin/Peel 53 


46 


62 


11 


4 


29 


York Region 83 


83 


106 


42 


48 


75 



As mentioned earlier, students coming to 
study in Ontario are classified according to 
their place of study in the previous year. 
There are about 20,000 immigrants from 
Hong Kong entering Canada each year, and 
more than half of these immigrants will set- 
tle in Ontario, in particular Metro Toronto 
and the neighbouring regions. 
There will be a great demand on the educa- 
tional services in these regions by students 
originally coming from Hong Kong. 

Partially funded by the Canada and Hong 
Kong Project, a detailed study of Hong Kong 
visa students in Metro Toronto is being 
planned. Researchers involved are Kathryn 
Mickie, Paul Lee and Bernard Luk. 



UPDATE 7 



Development of Hong Kong's New Manufacturing Base: Guangdong Accelerates 



Since the mid-1980's, South China has 
experienced major economic and social 
changes but nowhere more than in the 
Shenzhen Special Economic Zone (SEZ) 
and its Pearl River hinterland. This region 
lies just to the north of the Lo Wu border 
crossing from Hong Kong. Once a collec- 
tion of sleepy villages with less than 
50,000 people, Shenzhen has become a 
bustling manufacturing city of 2 million in 
the past ten years. It is accessible by fre- 
quent train and bus from Hong Kong, as 
well as by private boat. 

The recent ease of communication is the 
result of renewed historical ties between 
Shenzhen and Hong Kong and the greater 
economic development taking place 
throughout the provinces of Guangdong 
and Fujian in southeast China. The 
involvement of Hong Kong in this rapid 
development has been recognized by the 
Beijing government. In a recent interview 
with a Hong Kong TVB reporter, Premier 
Li Peng emphasized that Beijing has a 
great interest in securing the economic sta- 
bility of Hong Kong because China's well 
being is directly affected. 

Following Shenzhen's phenomenal suc- 
cess in the late 1980's, other Special 
Economic Zones and SEZ clones were set 
up all along the China coast, stretching to 
the northeast coastal areas and parts of the 
interior. However, Shenzhen and 
Guangdong province as a whole occupy a 
special place in the development of China. 
Until the 1980's, Guangdong was not 
allowed to industrialize by the Central 
Government as a matter of policy. It 
remained an agricultural backwater com- 
pared with other cities such as Shanghai or 
Dalian in the north. With the opening of 
China to Western investment, the situation 
changed dramatically. 

By 1984 Guangdong as a whole had 
caught up with and surpassed most other 
provinces and was ranked fifth in terms of 
total exports. By 1990 it ranked first with 
total exports of over $10 billion U.S. The 
economy of the Pearl River Delta - the 
economic heartland of Guangdong which 



by Paul Levine 
Hong Kong 

includes the Shenzhen SEZ - has grown by 
a minimum of 20% each year and shows 
no sign of levelling off. During the past ten 
years of growth, the only downturn came 
during 1988-89 when the central govern- 
ment enforced austerity measures designed 
to arrest near-runaway inflation and pre- 
vent the Chinese economy from overheat- 
ing. Since that time Shenzhen has grown 
by an astonishing figure of 40% per year! 

What is the cause of this dynamic activ- 
ity in Guangdong and in the SEZ in partic- 
ular? Three main factors can be singled 
out: first, improved energy and communi- 
cations infrastructure; second, attracted by 
lower wages in Guangdong, the large-scale 
movement by the high-volume manufac- 
turing and assembly sector out of Hong 
Kong; and third, to a lesser extent, a busi- 
ness climate and local policies that aid 
rather than hinder investment. The latter 
includes investment by both Hong Kong 
and overseas firms. 

Because the Guangdong delta region is 
adjacent to Hong Kong, there are few if 
any cultural or linguistic barriers. The peo- 
ple of both areas speak a similar Cantonese 
dialect which increases their solidarity, 
especially useful when closing business 
deals. There is also a major upgrading of 
communication links under way between 
Guangdong and Hong Kong. These include 
rapidly expanding port facilities that 
should increase shipping to Hong Kong's 
world-class container terminals. A new $1 
billion six-lane super-highway is being 
built from Hong Kong to Guangdong 
through the Shenzhen SEZ. In addition, 
there is an updated power grid. Its centre at 
the soon-to-be -completed Daya Bay nucle- 
ar power generating station, located to the 
east of Shenzhen SEZ, promises new 
sources of power for manufacturing and 
assembly plants. 

The second factor, cheaper labour, has 
always been a strong attraction for foreign 
investment in China. Until the mid- 1980's, 
Hong Kong manufacturers did not take 
advantage of this because the Chinese stan- 
dard of quality-control was inadequate. 



However, Hong Kong's competitiveness 
was threatened as inflation rose rapidly to 
about 13% and the cost of foreign materi- 
als increased in relation to the Hong Kong 
dollar. The latter is pegged to the more 
expensive US currency which has 
remained high in relation to international 
manufacturing in other lesser developed 
countries (LDC). 

After 1984 the Shenzhen SEZ received 
special treatment from the Beijing govern- 
ment in order to attract overseas compa- 
nies. With lower wages and costs, 
Shenzhen became a magnet for Hong 
Kong companies. Smaller overseas firms 
have had more difficulties because of the 
local costs added to labour, as well region- 
al taxes and subsidiary costs. However, 
larger, multi-national companies have 
found that manufacturing in the 
SEZ/Guangdong is more profitable as long 
as quality-control can be assured. Such 
companies include Alcan or Northern 
Telecom in the Canadian case, Heinz, 
General Foods or Proctor & Gamble from 
the U.S., as well as Hong Kong factories 
that produce garments for such names as 
Daniel Hechter and Marks & Spencer. 

The key factor has been the hiring and 
training of new workers, many of whom 
are just out of middle school, rather than 
employing those from state-run factories. 
As one engineer, responsible for a joint 
venture in the energy sector, said, "At first 
I worried about the quality of workers 
from the villages, but after about six 
months of training, I found that they made 
the transition from lack of respect for 
machinery to a fairly high level of exper- 
tise, better than workers on projects in 
other third-world countries where I have 
supervised." 

Strolling in the centre of Shenzhen 
amidst the high-rise office buildings along 
Liberation Road with its all-day traffic 
jams, one has the feeling that efficiency and 
capitalism are concepts whose time has 
arrived in southern Guangdong. 



8 UPDATE 



Japan and Hong Kong: Trade and Investment Trends 



Substantial Japanese trade with and 
investment in Hong Kong since the 1950's 
suggests confidence in the future of the 
colony after 1997. However, recent trends 
show that the increase in the value of the 
yen since 1985 has negatively effected trade 
and has had implications for Japanese 
investment. Japan is Hong Kong's second 
largest trading partner after China, and after 
Indonesia, Hong Kong has received the 
most Japanese foreign investment between 
1951 and 1988. Since 1985, the average 
number of Japanese investments per year in 
Hong Kong has been higher than that of any 
other country investing in the territory. 
Japanese government immigration policy 
regarding Hong Kong reflects a cautious- 
ness in acknowledging any doubt in Chinese 
intentions to maintain HK's present economic 
system for at least fifty years after 1997. 

Trade 

Japanese trade statistics reveal that Hong 
Kong imports from Japan have increased an 
average 15% between 1987 and 1989, 
despite the doubling of the value of the yen 
since 1985. Between February 1989 and 
May 1990,* the value of the yen rose 
against the Hong Kong dollar by 13%. In 
the first quarter of 1991, the yen was up 
9.4% against the H.K. dollar, compared to 
the same period a year earlier. This dramatic 
increase in the cost of Japanese goods did 
not halt the trend for more Japanese imports 
to Hong Kong. While the percentage 
increase of imports from Japan dropped to 
.2% in 1988-89, down from 29% in 1987-88 
and 27% in 1986-86, it rebounded to 13% in 
1989-90. The 1988-89 rate was the most 
dramatic slow down in growth of imports 
for a major Hong Kong trading partner. It 
can be partially explained by the dip in the 
value of the Hong Kong dollar during this 
period combined with the substantial 
increase of yen value. 



* 1989-91 figures are in real terms and are from First 
Quarter Economic Report 1991 (Hong Kong: 
Government Secretarial, Economic Services Branch, 
May, 1991). 



by D. Wendy McCallum 
Kyoto 
China, Hong Kong's largest trading part- 
ner, also saw a drop, but much smaller, in the 
percentage increase of its exports to Hong 
Kong, from 30% in 1987-88 to 26% in 1988- 
89 and 17% in 1989-90. U.S. imports to 
Hong Kong, the fourth largest after Taiwan, 
dropped from a 28% to 12% to 10% annual 
increase over the same period. 

Hong Kong Imports (U.S. millions)* 



Hong Kong Domestic Exports 

(not including re-exports) (U.S. millions): 



From: Japan 


China 


US. 


1990 103.36114 


236,133.73 


51,788.38 


1989 93,202.34 


196,675,95 


46,233.81 


1988 93,007.76 


155,633.53 


41,347.37 


1987 71,904.75 


117,356.67 


32,241.72 


First 3 months: 






1991 27,13101 


57,173.98 


13,050.88 


1990 21,235.09 


46,008.45 


12,693.19 


1989 23,35172 


40,584.91 


10,765.33 



*Statistics from Hong Kong Monthly Digest of 
Statistics, April 1991. 

Hong Kong imports more from Japan 
than it exports, but its domestic exports (not 
including re-exports) to Japan increased 
steadily between 1986 and 1989. From 
1987-1989, the average increase in the terri- 
tory's exports to Japan was 18%, but in 
1990 the growth rate dropped sharply by 
8%. This was a result of the appreciation of 
the Hong Kong dollar and the reduced price 
competitiveness of its goods. 

Hong Kong exports the most in terms of 
value to the U.S., while China is second and 
Japan fifth, after Germany and the U.K. 
Since 1987 Hong Kong exports to China 
have increased the most. Japan has the sec- 
ond largest increase while exports to the 
U.S. dropped .9% during 1988-89 and a fur- 
ther 10% in 1989-90. The weak perfor- 
mance of domestic exports to the U.S. 
should be viewed against the substantial 
increase of 77% in re-exports to this market 
from 1988 through 1990. Hong Kong 
exports to Japan and the U.S. are consider- 
ably less than its exports to China. Hong 
Kong's domestic exports to Japan are val- 
ued at approximately 30% of its exports to 
China and only 18% of its exports to the 
U.S. 



To: 


Japan 


China 


US. 


1990 


12,079.11 


47,469.59 


66,369.77 


1989 


13,027.82 


43,272.20 


71161.61 


1988 


11,435.47 


38,043.01 


71884.33 


1987 


9,489.08 


27,870.91 


71817.21 


First 3 months: 






1991 


2,634.99 


10.247.77 


11,677.88 


1990 


2,587.81 


9,288.29 


13.579.07 


1989 


2,941.58 


9.226.62 


14,132.69 



Exports of manufactured products to 
Japan from South Korea, Taiwan and Hong 
Kong jumped from US$18.2 billion in 1985 
to $27. 1 billion in 1989. Analysts have 
noted that these exports have consisted 
mainly of goods made by or produced under 
contract for large Japanese companies. 
Efforts by the Newly Industrializing 
Economies (NIEs) to penetrate Japan's 
domestic market with their own manufac- 
tures have generally been unsuccessful 
except for a brief boom in NTE-made elec- 
tronic consumer goods in 1987-88 [Far 
Eastern Economic Review, May 3, 1990]. 

Domestic exports originate in Hong 
Kong. This status is decided by product- 
specific government delineations of the per- 
centage of value added, content or produc- 
tion process which determines country of 
origin. Re-exports are those produced in 
another country, brought to Hong Kong 
where no significant value is added, and 
then re-exported to a third country. Current 
observations of increasing integration of the 
regional economies of East and Southeast 
Asia provoke special interest in re-exporting 
trends through Hong Kong. Linda Y.S. Lim 
and Clyde D. Stoltenberg of the University 
of Michigan contend that, "Regional trade 
now has a pronounced triangular pattern: 
Southeast Asian countries import capital 
goods and manufactured inputs from Japan 
and the NIEs for local processing, with the 
final products exported to the United States, 
or increasingly within Asia." [China 
Business Review, May-June 1990]. Recent 
statistics on re-exports from Hong Kong sug- 
gest a significant role for the colony in this 
process. 



Japan and Hong Kong, cont'd page 10 



UPDATE 9 



Japan and Hong Kong, from page 9 

Re-exports from Hong Kong/ 
Percentage of Total Re-exports 



To: 



Japan 



China 



U.S. 



1990 24,375.81 110,907.94 87,752.47 

(6%) (27%) (21%) 

1989 22,268.16 103,491.71 72,032.85 

(6%) (30%) (21%) 

1988 17,417.66 94,895.11 49,482.99 

(6%) (34%) (18%) 

Total Re-exports from Hong Kong: 



1990 
1989 
1988 
1987 



413,998.66 
346,405.47 
275,405.29 
182,780.42 



Total 1990 H.K. Exports* by 
Country of Destination: 



Japan 
China 
U.S. 



36,454.92 
158,377.53 
154,122.24 



Re-exports as a Percentage of Total 
Exports* to a Country: 



To: 



Japan 



China 



U.S. 



1990 67% 70% 57% 

1989 63% 81% 27% 

1988 60% 78% 21% 

1987 51% 75% 16% 

* Total exports = domestic exports + re-exports. 

The high proportion of Hong Kong 
exports to Japan and China which originate 
in a third country suggests that Hong Kong's 
role in the triangular pattern of trade is that of 
a processing centre or a buffer in politically 
sensitive situations such as Taiwan's trade 
with China or Japan's enormous trade sur- 
pluses with the United States. 

Attempts to determine from statistics 
what percentage of imports from Japan to 
Hong Kong are being re-exported and to 
where are unreliable and speculative. A 
spokesperson for the U.S. customs depart- 
ment said that re-exported goods from Hong 
Kong which originated in Japan cannot be 
identified because the country-of-origin 
delineations vary by country and product 
and because there is a time lag between 
importing and re-exporting. Imported goods 
may sit in Hong Kong for months before 
being re-exported to the United States. 



Investment 

Japanese annual foreign direct investment 
in Hong Kong (in U.S. dollars) has increased 
from $131 million in 1985 to S1.9 billion in 
1989, according to Japanese Ministry of 
Finance statistics. Hong Kong's director of 
industry, Mr. Andrew Leung Kin Pong said 
that if Japan continues its current rate of 
investment, it could overtake the U.S. as the 
territory's largest overseas investor and tech- 
nology transfer partner by the year 2000. The 
U.S. currently contributes 3 1% of the total 
value of industrial investment in Hong Kong, 
and Japan contributes 29%, according to a 
1990 survey of overseas investment in Hong 
Kong's manufacturing sector conducted by 
the Hong Kong government industry depart- 
ment The value of Japan's cumulative 
investment in Hong Kong's manufacturing 
industries (at original cost) is S8.6 billion. 
This is second only to the total value (at orig- 
inal cost) of U.S. investment, S9.3 billion. 
Compared to 43% of American investment, 
62% of Japanese investment went into the 
stock of fixed assets. 

The first Japanese investment in Hong 
Kong was recorded in 1960. Since then 
investment has grown steadily over the past 
30 years. Since 1985 the average number of 
investment projects grew to 14 a year, while 
American investments averaged 9 a year, and 
Chinese investments were 6 a year. In 1989, 
1 80 Japanese investments were identified, of 
which 100 (56%) were wholly-owned by 
Japanese interests, 9 (5%) were joint-ven- 
tures without a local interest and 7 1 (39%) 
joint ventures with a local interest. Together 
they employ more than 20,000 staff, repre- 
senting approximately 3.6% of Hong Kong's 
total manufacturing workforce. Americans 
had 147 investment projects in 1989, of 
which 90 (61%) were wholly owned, 14 
(10%) were joint-ventures without a local 
interest and 43 (29%) joint ventures with a 
local interest. China is the third largest indus- 
trial investor in Hong Kong with a total of 49 
investment projects identified in 1989. Of 
these 37 (76%) were joint ventures, in con- 
trast to the predominantly wholly owned 
American and Japanese investments. 

Japanese investment in Hong Kong indus- 
tries is mainly in electronics, electrical prod- 
ucts, printing and publishing, and watches 
and clocks. These account for 67% of total 
investment, compared to the 5 1% of 
American investment in the electronics 
industry. Other industries with substantial 
American investment are electrical products, 
textiles and clothing. Chinese investments 



are mainly in transport equipment and chem- 
ical products, accounting for 48% of their 
total investment. Other areas for Chinese 
investment are tobacco, electronics and tex- 
tiles and clothing. [Report on the Survey of 
Overseas Investment in Hong Kong 
Manufacturing Industries, 1990. Hong Kong 
Government Industry DepL, Nov. 6, 1990.] 

The Hong Kong Deputy Director of 
Industry, Mr. Wilfred Wong, perceives that 
increasing Japanese investment signifies 
Japan's confidence in and commitment to the 
future of the territory. He notes that in 1990 
the Hong Kong Industry Department assisted 
in four new Japanese projects and the expan- 
sion of five Japanese factories. Over the last 
20 months, the department had assisted some 
20 Japanese manufacturers in setting up 
offices in Hong Kong for sales or procure- 
ment activities. These projects included 
Pacific Tube Corp Ltd., NEC Technologies 
Hong Kong Ltd., and Ricoh Co. Ltd. [Hong 
Kong Digest, HK Economic and Trade 
Office, March/April 1991.] 

Last year Japanese investment in Kong 
Kong's property market was estimated to be 
about HK $12 billion. The big players are 
Nissho Iwai, EE Development and Yaohan 
International. A total of 1500 Japanese com- 
panies are in Hong Kong, including 
Marubeni, C. Itoh, Toyo Menka Kaisha, 
Mitsubishi and Mitsui. The Export-Import 
Bank of Japan records the breakdown of 
cumulative Japanese direct investment in 
Hong Kong and notes that the commerce and 
service sectors received nearly 1 2 times more 
Japanese investment than the manufacturing 
sector between 1951 and 1988. During this 
same period, the Bank also recorded that 
Hong Kong was second only to Indonesia as 
recipient of cumulative Japanese investment, 
which was $6.2 billion US to Indonesia's 
$9.8 billion US. 

Prepared by the Japan Bond Research 
Institute, the Country Rbk Report survey of 
specialists at fourteen Japanese entities in the 
fields of banking, trading and manufacturing 
confirms that the perception of investment 
risks in Hong Kong is reasonably low. This 
biannual survey aims to determine the level 
of Japanese investor confidence in about 100 
countries based on a risk rating of a number 
of different factors. These include political 
stability, consistency of policies, foreign 
exchange policy and economic growth 
potential. The rating is done on a 10 point 
scale, more than 9 meaning no risk, 8.9-7.9 
little risk, 6.9-5 some risk and less than 5 
indicating various degrees of risk. A general 



10 UPDATE 



rating is offered, which is based on compre- 
hensive scores given by each of Ihc fourteen 
groups. 

In January 1991, Hong Kong's general 
rating was 8.4 which was the same as in 
January 1989 and July 1989, immediately 
after Tiananmen. This is compared to 
Singapore, a country with a similar income 
per capita (S8,162US to Hong Kong's 
S9.643US in 1989), which received a general 
rating of 9.9 in January 1991 and 10.0 in 
January 1989. South Korea (income per capi- 
ta of S4.040US) rated 7.9 in January 1991 
and 8.4 in January, 1989. (Income per capita 
figures torn Asia 1990 Yearbook, Hong 
Kong: Review Publishing Co.) In terms of 
political stability, Hong Kong is rated 7.7 as 
of January 1991, compared to Singapore's 
rating of 9.9 and South Korea's of 7. 1 . Hong 
Kong's political stability rating dropped from 
8.3 in January 1 989, to 7.4 in July of that 
year reflecting a reaction to Tiananmen, but 
returned to average 7.7 since January 1990. 
Hong Kong's economic growth potential is 
listed as 7. 1 in January 1 99 1 , while 
Singapore's is 7.4 and South Korea's is 7.6. 
In terms of consistency of policies, Hong 
Kong is rated with 7.9, Singapore 9.3, and 
South Korea is 7.6. 

Despite the fact it is judged risky on some 
accounts, increased Japanese investment in 
Hong Kong is justified by high rates of 
return. Exemplifying this optimism about the 



future of Hong Kong is Kazuo Wada, chair- 
man of the Japanese international retailer, the 
Yaohan Department Store Group. Mr Wada 
recently shifted Yaohan's Asian headquarters 
from Japan to Hong Kong. He defends his 
move as a foresighted strategy to expand 
Yaohan internationally and to stimulate busi- 
ness in China and throughout Asia, using 
Hong Kong as a base. In addition to the 
appeal of Hong Kong's unparalleled 16.5% 
corporate tax, he considers Hong Kong to be 
"Asia's strategic core, where high quality 
information not available in Japan is concen- 
trated." Quoted in the Hong Kong Trader, 
Mr. Wada maintains, "Eventually, I antici- 
pate that the southern part of China will be 
the most suitable region for foreign enterpris- 
es to make investments. Before such an era 
arrives Yaohan will penetrate deep into 
China, and when other foreign companies 
turn their eyes to China, Yaohan will have 
established itself in many ways, including the 
operation of stores and commodity logistics." 

Immigration 

In December 1990, the Ministry of 
Foreign Affairs in Japan released data on the 
number of "foreigners" registered in Japan at 
the end of 1989. People from China, Taiwan 
and Hong Kong totalled 137,499. In sharp 
contrast to the Canadian or American 
response to the flood of Hong Kong 



emigrants, the Japanese government refuses 
to acknowledge any such trend. The official 
Japanese response to questions about its 
immigration policy towards Hong Kong has 
been to treat the question as "hypothetical." 
A press release from the Japanese Ministry 
of Foreign Affairs states: "Rather than talk- 
ing about specific hypothetical problems and 
thus heightening the concern of people inside 
and outside of Hong Kong, it is best that 
Japan continue to express the hope that Hong 
Kong will continue to play the role of a good 
contact and intermediary agent between the 
Chinese mainland and the outside world In 
this way, we intend to foster business confi- 
dence in Hong Kong even after 1997." The 
main concern of the Japanese government 
seems to be sending the "proper message" to 
China: "We hope that China will understand 
that it would be in China's interests to try to 
respond appropriately to Japan's repeatedly 
expressed hope and that we will be able to 
avoid an exodus of people from Hong 
Kong." 

The author would like lo thank the Hong 
Kong Trade and Development Council, 
Toronto; the Japan External Trade 
Organization (JETRO) offices in New York, 
Hong Kong, Tokyo and Toronto; the Japan 
Economic Institute (J El), Washington and 
Prof. Don Daly of York University for their 
assistance in research for this article. 



PADS Agreement and the Future of Hong Kong-China Relations 

by Phil Calvert 
Ottawa 



The July 4th Memorandum of 
Understanding (MOU) between Britain and 
Hong Kong on the Port and Airport 
Development Strategy is doubtless the most 
significant political development in relations 
between the two, and between Britain and 
China, since the signing of the 1984 Joint 
Declaratioa The MOU sets the stage and the 
tenor of the transition years leading up to 1997 
and establishes the parameters within which 
governments on all sides will be expected to 
operate. In doing so, it has two, somewhat 
contradictory purposes. In reaching agreement 
to go ahead with the project, it lowers the high 
level of Sino-British tension which had devel- 
oped on the issue, and in this sense can be 
seen as an important "confidence-building 
measure" designed to reassure all observers 
(and investors) that the future Hong Kong 



Special Administrative Region will continue 
to serve as an important economic centre in 
Asia. At the same time it establishes clear and, 
some would argue, quite generous guidelines 
for giving China influence over significant 
issues in Hong Kong leading up to 1997 - an 
influence which, because of the PRC's 
demonstrated leverage on the PADS issue, 
could extend far beyond the letter of the MOU 
or other previous agreements. 

Some of the key provisions of the MOU 
include the establishment of a special commit- 
tee, operating under the auspices of the Hong 
Kong-British Joint Liaison Group, to discuss 
major decisions relating to the airport and the 
provision that any debts larger than HKS5 bil- 
lion, repayable after 1997, would need the 
agreement of the PRC government. These two 
provisions establish a notable level of influ- 



ence on the part of the PRC over the airport 
project, and by implication and precedent, 
over the entire transition process. At the same 
time, however, it seems to demonstrate 
Beijing's willingness to get on with the project 
and the indication that its previous opposition 
was not directed at the project itself so much 
as the approach taken by the Hong Kong gov- 
ernment. 

While the MOU will increase international 
confidence in the future of the airport and the 
equally crucial port component, it also makes 
it virtually certain that the Hong Kong or 
British governments will consult Beijing on 
any other significant issues straddling 1997. In 
this sense, then, the MOU increases short-term 
economic confidence by allowing the project 
to continue, while at the same time abrogating 

PADS Agreement, cont'd page 12 



UPDATE 11 



PAD Agreement, from page n 

what was one of the political aims of the 
PADS project - that is, to demonstrate Hong 
Kong's political and economic autonomy in 
the wake of Tiananmen. Indeed, it gives fur- 
ther acknowledgement to the inevitable 
growth of PRC influence over Hong Kong in 
the years leading up to 1997. 

Doubtless the signing of the MOU on the 
project was met with sighs of relief from many 
quarters who saw resolution of the issue as nec- 
essary to any further progress in implementing 
the transition of power. With this issue, for the 
time being at least, cleared out of the way, 
Britain can more freely address other sensitive 
concerns, such as human rights issues. Beijing, 
despite its posturing, needed an agreement on 
the issue as well. The MOU aids the PRC in the 
rebuilding of its international credibility after 
Tiananmen, in that it conveys a sense of reason- 
ableness on the part of Beijing. For the same 
reason, Beijing is at least appearing to acknowl- 
edge international concern over human rights. 

While an ongoing impasse on PADS would 
no doubt have put Sino-British relations under 
serious strain, the resolution of the issue has 
given China a very big lever in future Hong 
Kong politics. The resolution, however, 
remains somewhat neo-colonialist, in that its 
provisions, such as the Sino-British Council to 
oversee the project, mean that this very signifi- 
cant Hong Kong issue will still largely be dealt 
with in Sino-British terms. This does not bode 
particularly well for the growth of the proto- 
demccratic Hong Kong institutions which are 
intended to provide some protection for the 
people in the face of China's reassertion of 
sovereignty in 1 997. PRC pressure on Hong 
Kong publicists to engage in self-censorship on 
the whole issue of the 1997 handover has 
already been notable. It remains to be seen 
whether the commercial and economic implica- 
tions of this agreement translate into serious 
political consequences as well 



Hong Kong Elections 



The United Democrats of Hong Kong, 
led by Martin Lee, won a landslide victory 
in the September 15th partial elections for 
the Hong Kong Legislative Council 
(Legco). Twenty-one members of Legco are 
appointed by the governor, 21 elected by 
functional constituencies (professional 
groups), and 18 elected by popular vote. 
The United Democrats won 16 of these 18 
seats. None of the communist-backed candi- 
dates nor those from the Liberal Democratic 
Federation, representing the interests of 
business, won seats. Voter turn-out was low 
at 39%, a figure which allowed Peking's 
chief official concerned with Hong Kong 
and Macao, Lu Ping, to pour cold water on 
the results. However, in Hong Kong and in 
London the results were seen as a proof of 
the enthusiasm for democracy in Hong 
Kong. Douglas Hurd, the Foreign Secretary 
(and a historian of China) commented that 
the elections "opened a new and encourag- 
ing chapter" in Hong Kong's history. An 
editorial in The Times on September 18th 
called on the British prime minister to "lean 
on the Hong Kong government to give 
democracy its due." 

Martin Lee allowed no time to elapse 
before calling on the governor to make 
appointments to the places in his gift from a 
list supplied by the UDHK. Sir David 
Wilson did not follow this advice. On 
September 21st he named seven continuing 
members and ten new members, in addition 
to the four ex officio members. Pressure can 
be expected now to have the number of 
directly-elected members of Legco 
increased and to have representation from 
the UDHK on the Executive Council. 



Emigration from 
Hong Kong 

Only 10,000 of a possible 12,000 employ- 
ment visas, dedicated by the US authorities for 
key personnel working for US companies in 
Hong Kong, are likely to be taken up this year. 
This is a lower rate than anticipated when the 
scheme was launched (Hong Kong Digest, June 
10th). This tepid level of interest is paralleled 
by a lower than expected level of applications 
for passports under the British Right of Abode 
scheme. Only about 65,000 applications were 
received for the 50,000 places under the first 
tranche. The global figures for British passports 
are misleading. Applications are made in spe- 
cific categories, and some categories were 
heavily over-subscribed while others were 
under-subscribed. The two categories most 
heavily over-subscribed were translators/ inter- 
preters (291 for 42 places) and legal profession- 
als (1200 for 185). Those which were most 
under-subscribed were: managers and adminis- 
trators (12,594 for 14,927) and the Royal Hong 
Kong Police (3,299 for 3,282) (South China 
Morning Post, June 23, 1991). The process of 
interviewing applicants is under way, the plan is 
that 200 people will be interviewed every week 
for the next three years. 

These two sets of figures seem to suggest a 
weakening of the demand for emigration from 
Hong Kong, but it would be too simplistic to 
interpret them in this way. People eligible for 
either scheme may not have applied because 
they already hold foreign citizenship or because 
they are planning to move to countries other 
than the UK or the USA Others may have been 
put off by the complexity of the application pro- 
cess (See Update, 4, Spring 199 1, p. 3). Some 
people may have felt that they were ineligible. 
Concern has been expressed that the categories 
being used are too rigid and limit the number of 
people who can apply under the scheme. 



Not everyone is leaving. 

Although Hong Kong's 1997-induced 
brain drain now draws away about 60,000 
emigrants each year, the majority of the terri- 
tory's nearly six million people have little 
hope of obtaining a foreign passport. They 
simply do not have the investment money, 
job skills, education or family connections to 
qualify for immigrant visas. 

12 UPDATE 



Choosing to Stay Behind 

by Susan Henders 
Hong Kong 

However, even some of those with good 
immigration prospects say they will stay 
behind instead of leaving. Their deep attach- 
ments to crowded, fast-moving, prosperous 
Hong Kong and the risks and costs of immi- 
gration are holding them back. 

"I was bom in Hong Kong and I love this 
place," said Steven Yip [not his real name], a 
journalist who also fears his not-quite-perfect 



English would keep him out of a career in 
news should he emigrate. 

Others choosing to stay echo Yip's wor- 
ries. "My business could never survive if I 
went international," said Anna Lo, who built 
her successful modelling and fashion show 
production company, Catwalk Productions, 
from the ground up. "Besides, Hong Kong is 
my home town. I have travelled a lot and I 
like Hong Kong best." 



Timothy Gibbs, general manager of the 
Royal Bank of Canada's Hong Kong branch, 
said he has employees with degrees from for- 
eign universities who say they will stay. 
"They aren't too scared about 1997," Gibbs 
said. "There will still be a Hong Kong." 

It is difficult to estimate the exact number 
of people opung for life in Hong Kong 
despite having the means to leave. Not only 
are many people reluctant to talk about their 
plans, many have not applied for immigration 
visas yet but are trying to create options to 
leave should it become necessary, according 
to Ronald Skeldon, a senior lecturer in 
Geography at the University of Hong Kong. 
How many will actually stay depends on con- 
ditions in Hong Kong, China and immigra- 
tion destination countries like Canada in the 
years before and after 1997. 

Despite these difficulties, a survey of 
Hong Kong professionals done in late 1988 
and early 1989 gives some tentative indica- 
tions of how many people with good emi- 
gration prospects will potentially stay. The 
study, done by the Hong Kong Institute of 
Personnel Management and the City 
Polytechnic of Hong Kong, found as many 
as 26% of respondents were potential "stay- 
ers," people who said they probably would 
not or definitely would not emigrate. At the 
same time, 46% of respondents said they 
probably or definitely would emigrate; 8% 
were undecided. Because the responses 
were gathered before the June 4, 1989 
crackdown on the pro-democracy move- 
ment in Mainland China, the report proba- 
bly underestimates the number of potential 
emigrants among professionals. 

The study indicates the professionals 
more likely to remain in Hong Kong and the 
reasons behind their decision. Those respon- 
dents over 64 years old and those under 25 
were more likely to be potential "stayers" 
than other age groups. Single and childless 
respondents were also less willing to emi- 
grate, while those married professionals 
with children were more determined to 
leave. 

Phoebus Tai Hung Wai, a 33 year-old, 
university-educated senior inspector with 
the Royal Hong Kong Police and father of 
two small children, illustrates the dilemma 
of many parents. Tai said he and his wife, a 
middle manager with a local bank, have no 
plans to leave their comfortable lifestyle for 
the sake of a foreign passport. However, 
they do worry about the long-term future of 
their children. "I have confidence in the sta- 



bility of Hong Kong for a decade or even a 
generation," Tai said, "but after that it 
becomes more uncertain." Tai was educated 
in Hong Kong and, except for visits to 
China and Macau, has never travelled 
abroad. 

Professionals educated in Hong Kong 
rather than overseas showed less inclination 
to leave. Those with less education and job 
experience and less well-developed skills 
were also less likely to leave than their bet- 
ter educated and experienced counterparts. 

Many of the reasons respondents had for 
staying in Hong Kong were distinct, rather 
than simply the opposite of those forces 
pushing others to go. The study found that 
fears about job opportunities and racial dis- 
crimination overseas, preferences for living 
conditions in Hong Kong, confidence in the 
territory's post-1997 stability and kinship 
ties topped the list of reasons motivating 
potential "stayers" to remain in Hong Kong. 
Other concerns included adaptation to a for- 
eign environment, the cost of living abroad 
and desire to educate their children in Hong 
Kong. 

Carmen Yim Ka Man is a counsellor at 
the Hong Kong Catholic Marriage Advisory 
Council, which works with couples making 
emigration decisions. She maintains that 
financial, career and quality of life concerns 
often overlap. People well-employed in 
Hong Kong risk losing income and status 
because of difficulty finding comparable 
work in their new country of residence. 
Women also can end up being responsible 
for unaccustomed housework because they 
can no longer afford to hire domestic help. 

A 1991 Hong Kong Institute of 
Personnel Management survey of Hong 
Kong immigrants in Canada backs up 
Yim's contention that emigration is stressful 
and risky. Using data collected from 47 1 
immigrants in August and December 1990, 
Institute researcher Sara F.Y. Tang found 
74% of respondents were able to get their 
first job within three months of moving to 
Canada. However, almost two-thirds 
dropped in job rank, nearly 30% by as many 
as three or more steps. More than half of the 
respondents had to change professions, and 
more than half also took a drop in dispos- 
able income. For 16% that income drop was 
more than 50%. 

Business woman Anna Lo said that 
throwing a going-away party for friends 
departing for a new life in Canada or the 
U.S. has become a waste of money because 



so many of them end up returning to Hong 
Kong. "They joke that it's because they 
can't play majong [a popular Chinese game) 
anywhere else," Lo indicated. "The real rea- 
son is that it's easier to make money in 
Hong Kong." Brian Gundcrson, the 
Canadian Imperial Bank of Commerce's 
general manager of support services for 
Asia, said he has heard of people forced to 
return to Hong Kong because things have 
not worked out in Canada. "That kind of 
thing circulates back here and maybe dis- 
courages people from leaving." 

Nevertheless, intangibles, rather than 
dollars and cents, motivate some people to 
stay. While surveys suggest 50-60% of his 
fellow lawyers could emigrate before 1997, 
Albert Ho Chun Yan declared he is commit- 
ted to remain. Ho is the internal vice-presi- 
dent of the United Democrats of Hong 
Kong, one of the most liberal and high pro- 
file of the territory's new political parties 
and winner of the recent Legco elections. 
He indicated that love for Hong Kong, 
"moral" commitment to its people and the 
desire to live in a Chinese society prevent 
him from seeking a foreign passport. "It is 
something that is very personal," adds Ho, 
who claims many other members of his 
party share his sentiments. Only two of the 
United Democrats' 16 candidates for 
September's Legislative Council elections 
have foreign passports, according to Ho. 
Both acquired them years ago while they 
were overseas as students. 

However, researchers at the University 
of Hong Kong caution that emigration deci- 
sions are constantly under review, even for 
most of those who say they will stay. "I sus- 
pect very few people would say categorical- 
ly that they would not leave under any con- 
ditions," said Wong Siu Lun, a professor in 
the University's Sociology Department. 
"Hong Kong is basically an immigrant com- 
munity, so people have that readiness to 
leave." 

Skeldon suspects the risks and costs of 
emigration are giving some potential immi- 
grants second thoughts, especially given the 
current economic downturn in Canada, the 
United States and Australia. However, he 
expects emigration levels to continue at 
approximately 60,000 people per year for 
the next few years. A major shift in the 
immigration policies of these key countries 
or another crisis akin to the events of June 
4th in Beijing could spark a new rush to 
apply for immigrant visas. 



UPDATE 13 



The following articles by our research assistants are a continuation from the Spring 1991 Update of the 

description of Chinese-Canadian organizations in Toronto and Vancouver. They also include some 

of the Chinese student associations at several universities in these cities. 

Chinese-Canadian Associations in Vancouver 

by Hugh Xiaobing Tan 
Vancouver 



Chinese Community Library 
Services Association 

Established in 1972 as a non-profit orga- 
nization, this association provides library 
services to the local Chinese community. It 
now has more than 500 members, most of 
whom reside in the Greater Vancouver area. 
The CCLSA maintains two subsidiary insti- 
tutions: the Chinese Community Library 
and the Chinese Community History Room 

The Library collects and maintains 
Chinese publications and makes them avail- 
able to the public, free of charge or at mini- 
mal cost. With a collection of more than 
8,000 books and a regular subscription to 9 
newspapers and 24 magazines, it is one of 
the few libraries of its kind in the Greater 
Vancouver area. In addition to its "in- 
house" services, it also operates a mobile 
out-reach unit which brings a variety of ser- 
vices to senior citizens living in the neigh- 
bourhood. 

The History Room was established in 
1983 in recognition of an acutely felt need 
to furnish a Chinese -Canadian history of 
British Columbia. It aims to collect and pre- 
serve materials documenting the Chinese 
heritage of the province. Over the years it 
has accumulated a rich collection of diverse 
materials. 

Funding for the association comes from 
both public and private sectors, as well as 
from fund-raising events. 
591 E. Pender St. 
Vancouver, B.C. V6A 1V3 
President: May Chu 
Library (604) 254-2107 
History Room (604) 254-3012 

Vancouver Section of the Hong 
Kong-Canada Business Association 

Following the National Association's 
guidelines, the Vancouver Section has a pri- 
mary goal of promoting connections, com- 
munication and trading relationships 
between business communities in Hong 
Kong and Canada. It now has a membership 



of more than 500, most of whom are 
Canadians doing business with Hong Kong. 
About one-third of its members are original- 
ly from Hong Kong. 

Its regular activities include a monthly 
luncheon meeting and an annual dinner 
party for all members. Usually a speaker, 
well-known to the community, is invited to 
address the luncheon meeting. 

Last year, the organization sponsored an 
exhibition, called 'Transplant," in down- 
town Vancouver. All exhibits were products 
of manufacturing firms set up by Hong 
Kong business immigrants in the Greater 
Vancouver area. One purpose of the exhibi- 
tion was to dispel the popular belief that 
Hong Kong immigrants have invested only 
in the real estate market. The Association 
also participated in the Festival Canada held 
in Hong Kong last June and will take part in 
the organization of the Hong Kong Festival 
in Canada in 1992. 
700-1550 Alberni St 
Vancouver, B.C. V6G 1A3 
Section Pres.: Francis Cheung 
(604) 669-4444; fax: (604) 681-0093 

Vancouver Chinatown Merchants 
Association 

The primary goal of this non-profit local 
organization is improving business in 
Vancouver's Chinatown. All 200 members 
are people or firms doing business in the 
area. Founded in 1981, the Association is at 
present compiling a publication for its 10th 
anniversary celebration. 

To attract more people to shop in 
Chinatown, the organization has strongly 
advocated a beautification program which 
includes cleaning rear lanes and streets and 
installing more street lights. To solve the 
parking problem for shoppers, the Associa- 
tion has negotiated with the provincial and 
municipal governments to turn a parking lot 
at the edge of Chinatown into a crown prop- 
erty so a multi-level and lower-cost parking 
facility can be constructed. 



The Chinatown Merchants Association 
has a board of 25 directors. Its funding 
depends on membership fees and donations 
from its directors and members. 
206-37 E. Pender SL 
Vancouver, B.C. V6A 1S9 
Pres.: King Wong 
(604) 682-8998 

Vancouver Chinatown Lions Club 

Following the general guidelines of the 
International Lions Club, the Chinatown 
Club is a non-profit, charity, and service 
organization. Its objective is to serve those 
in need. The organization was established in 
1954 and is the oldest Lions Club in 
Vancouver's Chinese community. Its mem- 
bership varies from year to year and in 1991 
was 73. About 80% of its members are of 
Chinese origin, 40% of whom are originally 
from Hong Kong. 

The Club actively participates in com- 
munity affairs. It took part in the building of 
the Dr. Sun Yat-Sen Classical Park; it initi- 
ated the idea of constructing the "China 
Gate" and negotiated with the provincial 
government on this matter. It has also built 
three "Seniors Mansions" and rents the 
apartments to low-income Chinese senior 
citizens. Most recently it sponsored a fund- 
raising sweepstakes for East China flood 
relief. Every year the Chinatown Lions Club 
donates $5,000 to cultural or educational 
institutions in the community. 

Its funding depends on membership fees 
and fund-raising events, such as the annual 
Miss Chinatown Pageant. In recent years 
some of its former members have formed 
several new Lions Clubs, including the 
Vancouver Cathay Lions Club, Vancouver 
Mandarin Lions Club, and most recently, 
the Vancouver Pacific Lions Club whose 
members are all women. 
830 Campbell Ave. 
Vancouver, B.C. V6A 3V2 
Pres.: Bill Ma 
(604) 324-7717 



14 UPDATE 




Dr. Sun Yat-Sen Park 

Yee Fong Choy Tong 

(National Headquarters and Vancouver 

Branch) 

The Yee Fong Choy Tong is a clan-char- 
ity organization with branches all over the 
world. It has sections in six major Canadian 
cities. Its Canadian headquarters and 
Vancouver branch are located at the same 
address. 

The Vancouver branch was established 
89 years ago and is registered as a non- 
political, non-profit organizatioa Its major 
goal is to maintain connections and commu- 
nication between people with the family 
name of Yee or Yu and provide them with 
moral, spiritual and, when necessary, finan- 
cial support. At present it has about 300 
members. 

Its activities are mainly social and recre- 
ational. Regular events include the spring 
banquet, the annual memorial ceremony, 
and the autumn outing. It has also set up a 
scholarship program for children of its 
members. 

226 E. Georgia St 
Vancouver, B.C. V6A 1Z7 
Pres. of National Headquarters: Bill Yee 
Pres. of Vancouver Branch: Ken Yu 
(604) 684-3074 

Vancouver Society in Support of 
Democratic Movement (VSSDM) 

The VSSDM was formally registered as 
a non-profit society on June 28, 1991, fol- 
lowing the June 4th incident in Beijing. The 
idea of forming the society was initiated 
during demonstrations in support of the pro- 
democracy movement in China. It presently 
has about 700 members, including some of 
non-Chinese origin. 

The Society is one of the six member 
organizations of the North American 
Coalition for Chinese Democracy. 
According to its constitution, it aims to pro- 
mote democracy, freedom, human rights 
and lawful society in China. During the past 
two years, it organized or sponsored several 



events and activities to achieve this goal. 
These have included the sponsorship for 
two years of the Concert for Democracy in 
China, organization of "Democracy Month" 
activities, setting up a permanent Goddess 
of Democracy Statue at the University of 
British Columbia, and lobbying the Geneva 
Human Rights conferences. 

The VSSDM maintains its profile by the 
following activities: 1) educating the public 
on the democracy movement through the 
publication of articles, organization of semi- 
nars and presentation of speeches at schools 
and community centres; 2) lobbying the 
three levels of government and parliamen- 
tarians on support of the pro-democracy 
movement in China; and 3) strengthening 
relations with other democracy organiza- 
tions in the world, especially those in North 
America. 
362 E. 10th Ave. 
Vancouver, B.C. VST 1Z7 
Chairperson: Raymond Chan 
(604) 873-2189; fax (604) 873-2181 

Vancouver Hong Kong Forum 

This organization was founded in April 
1991 by a group of Vancouver residents con- 
cerned about Hong Kong's future. It now has 
a dozen active members, most of whom are 
Hong Kong immigrants. These people are 
attentively watching developments in the 
colony including such important issues as the 
Vietnamese boat people problem, the democ- 
racy and human rights movement, and the 
recent direct elections of members of the 
Legislative Council (Legco). 

The Forum organized the "Don't Forget 
Our Hong-Kong Roots Movement" in 
Vancouver and held a news conference last 
May. With the efforts of Forum members, 
over 100 landed immigrants who still have 
valid Hong Kong ID numbers were regis- 
tered for the September Legco elections. A 
voting delegation was formed to travel to 
Hong Kong as part of the larger North 
American delegauoa This has aroused con- 
troversy in the local Chinese community, 
but the organization insists on the justifica- 
tion of this activity. 

Although the Forum does not have an 
office, information can be obtained from its 
coordinator 
Alex Chan 
Dynamex Ltd. 
2675 Boundary Rd. 
Vancouver, B.C. VSM 3Z5 
(604) 876-9245 



Chinese Students' Association of 
U.B.C. 

This association is the oldest Chinese 
student organization at the University of 
British Columbia and has existed for over 
forty years. There are presently more than 
200 members. About half of the member- 
ship is originally from Hong Kong while the 
others are Chinese-Canadians. 

Its activities are predominantly social 
and a variety of events are held such as reg- 
ular dances. A Cantonese course is also 
offered to members free of charge. Another 
important objective of the association is to 
provide scholarships for its members. 
Box 25, Student Union Bldg. 
Univ. of British Columbia 
Vancouver, B.C. 
Pres.: Simon Gee 
(604) 228-4339 

Chinese Students' Association of 
Simon Fraser Univ. (CSA) 

The oldest Chinese student organization 
at Simon Fraser, the CSA was established in 
1965, at the same time as the founding of 
SFU. In 1991 it has a membership of about 
90, the majority of whom are students from 
Hong Kong. The rest are from China, 
Taiwan and Singapore. The CSA is funded 
partly by the universtiy and partly through 
fund-raising events. 

Its two main purposes are: 1) to intro- 
duce Chinese culture to students from other 
countries and 2) to develop connections 
between members in order to help them 
adjust to Canadian life. Its major events this 
past year included the New Year Lion 
Dance, the "Art of the Dragon" Exhibition 
and the "Moon Cake Sale" for the Mid- 
Autumn Festival. It also organizes regular 
movie shows and outdoor activities. Last 
month it co-sponsored a cinema to raise 
money for China flood relief. Every Friday 
from noon to 1 :00 pm, the CSA broadests in 
Chinese on the SFU radio station CJIV. Its 
programmes include news, Chinese songs 
and comments on social events. 
6725 Dumfries St 
Vancouver, B.C. V5P 3B8 
Pres.: Amenda Lam 
(604) 324-3688 



Associations, cont'd, page 16 



UPDATE 15 



Chinese-Canadian Associations in Toronto 



Chinese Canadian Intercultural 
Association (CCI) 

Founded in 1980, the CCI is a non-profit 
organization which today has a membership 
of about 850. It has pledged to continue the 
objectives of its founders: the promotion of 
Chinese-Canadian cultural exchanges and 
assistance to Chinese compatriots in areas 
of immigration, education, employment, 
health and welfare. Its activities include reg- 
ular recreational and commemorative activi- 
ties; classes and seminars on Chinese paint- 
ing and calligraphy, tai chi, cooking and 
needlework; exhibitions and free coun- 
selling and English classes. In 1984 the CCI 
founded the Dr. Sun Yat-Sen Chinese 
School which is situated at Baldwin and 
Huron Streets in the Chinatown area. 
112 Huron St. 
Toronto, Ont. M5T 2B2 
Pres.: Moon Lum 
Exec. Dir.: Yiu-Kuen Chan 
(416) 591-6347 

Chinese Information & Community 
Services of Metro Toronto 

In 1968 a number of concerned Chinese 
students volunteered to provide interpreting 
services to Chinese residents in downtown 
Toronto. Initially a project under the 
University Settlement Recreation Centre, by 
1974 the service became independent. The 
new organization, named Chinese 
Interpreter and Information Services, was 
then incorporated as a charitable organiza- 
tion. Its purpose was to facilitate the cultur- 
al, economic and political integration and 
adaptation of Chinese Canadians in Metro 
Toronto. Since its inception, the agency's 
services have grown to include its main 
office in the Cecil Community Centre since 
1978 and a branch office in Scarborough 
established in 1982. In 1988 the agency was 
renamed the Chinese Information and 
Community Services. 

Its activities fall into six categories. The 
Information and Referral Services include 
interpretation, form-filling, referral and tele- 
phone information services. Newcomers 
Language Training Programs hold English- 
as-a-second-language (ESL) classes to pre- 
pare immigrants for citizenship. To facili- 
tate immigrants' adaptation to Canadian 
society, the Volunteer and Community 



by Irene Tong 
Toronto 

Development Programs recruit, train and 
place volunteers, organize workshops, semi- 
nars and mutual-aid groups and educate the 
public. Services pertaining to Community 
Relations are aimed at enhancing community 
orientation, political awareness and identifi- 
cation with Canada. They include leadership 
development programs, community network- 
ing and advocacy, forums and conferences. 
Senior Services are available to facilitate 
Chinese seniors' integration into Canadian 
society and to promote their physical and 
emotional well-being. For residents in 
Scarborough, Family Services provide indi- 
vidual and marriage counselling, family life 
education and assistance in family disputes. 
58 Cecil Street 
Toronto, Ont. M5T 1N6 
(416) 598-2022 
Scarborough Branch 
3852 Finch Ave. E., Suite 310 
Scarborough, Ont. MIT 3T6 
(416) 292-7510 

Toronto Chinese Community 
Services Association (TCCSA) 

The TCCSA is conveniently located in the 
downtown Chinese area. It was founded in 
1973 and registered as a non-profit organiza- 
tion in Ontario in 1976. Its stated mandate is 
"to assist newcomers to adapt to the Canadian 
style of living and become the mainstream of 
the Canadian mosaic." Its clients are ethnic 
Chinese who speak Cantonese, Mandarin or 
Vietnamese. It is supported by federal, 
provincial and municipal funding. 

Its services include counselling, ESL and 
citizenship preparation classes, visitation of 
seniors in hospitals and nursing homes, and 
the orientation of immigrants to Canadian 
policies through its bi-monthly information 
handbook. Its Chinese school and library 
hope to ensure the continuity of heritage 
languages for Chinese youth by providing 
reading materials in native Chinese lan- 
guages. In addition, seminars and work- 
shops, support and interest groups, cultural 
and recreational activities are organized to 
integrate Chinese immigrants into the wider 
Canadian community. 
310 Spadina Ave., Suite 602 
Toronto, Ont. M5T 2E8 
(416) 977-4026 or 977-3689 



Toronto-Hongkong Fellowship 
Association of Canada (THFA) 

The THFA was registered in 1988 as a 
non-profit organization with the objectives 
of promoting the spirit of mutual assistance 
among compatriots and showing concern for 
human rights and freedom in Hong Kong. It 
provides members from Hong Kong with 
information pertaining to immigration, 
employment, education and investment, thus 
promoting Canada-Hong Kong links. In 
addition, it hopes to promote harmonious 
relationships among racial and cultural 
groups within the community and their inte- 
gration into mainstream Canadian society. 

At present the Association has a mem- 
bership of 200-300 people, most of whom 
are recent immigrants from Hong Kong. 
The majority are business immigrants and 
professionals, such as lawyers, doctors, 
architects, social workers and entertainers. 
It has a 29-member Board of Directors, and 
its funding comes mainly from members' 
donations. 

Its future projects include the establish- 
ment of a permanent location for the 
Association and the creation of current 
affairs and elections groups to promote 
political participation among the Chinese 
community in Toronto. 
112 Huron St. 
Toronto, Ont. M5T 2B2 
Chair: Allen Leung 
(416) 591-6347 

Federation of Chinese Canadians in 
Scarborough (FCCS) 

The FCCS is a community-based, non- 
racial, non-profit organization active in pro- 
moting human rights, race relations and 
muluculturalism. It was formed in 1984 in 
response to a number of racial incidents in 
Scarborough, namely the "Dragon Mall 
Incident" and the hate literature issue. 

The main objectives of the FCCS are 
advocating and promoting equality and 
human rights of all residents in 
Scarborough; encouraging greater participa- 
tion by and integration of the Scarborough 
Chinese community in the city's social, cul- 
tural, economic and political life; and pro- 
moting cooperation and communication 
among Chinese Canadian organizations and 
residents in Scarborough. 



16 UPDATE 



In the past few years the Federation has 
been active in promoting race relatioas and 
community participation in Scarborough. In 
1984 along with other Chinese community 
organizations, it successfully orchestrated a 
deputation to the Scarborough City Council 
which resulted in the passage of a motion to 
condemn the distribution of hate literature in 
Scarborough. It also spearheaded the cam- 
paign for the Heritage Language Program in 
Scarborough and participated actively as a 
member of the Policy Advisory Committee 
of the Scarborough Board of Education in 
the development and implementation of a 
policy amenable to better ethnic and racial 
relations and multiculturalism. 

Apart from co-sponsoring youth confer- 
ences, educational conferences and semi- 
nars, the FCCS advocates human rights 
issues together with other Chinese commu- 
nity and ethno-cultural groups. These issues 
have included the redress of the Head Tax 
and Chinese Exclusion Act and the 1989 
pro-democracy movement in China. To pro- 
mote the participation of Chinese- 
Canadians in mainstream Canadian life, the 
organization developed a community pro- 
ject called "Participation '89" and published 
a bilingual pamphlet on grassroots commu- 
nity participation. In 1991 a well-attended 
"Cultural Awareness Night" was organized 
to promote understanding and interaction 
among Scarborough residents. 
P.O. Box 547 
4245 Sheppard Ave. E. 
Scarborough, Ont. MIS 3V6 
Pres.: Dr. Anthony Kwok 
(416) 321-3703 or 291-3117 

The Mandarin Club of Toronto 

The Mandarin Club is registered as a 
non-profit, non-share-holding corporation 
which was founded four or five years ago 
by a "group of dedicated, socially conscious 
and community -oriented Chinese and 
Canadian businessmen and businesswom- 
en." It is managed by professionals under 
the supervision of the Board of Directors. 
Its objective is to establish a world-class, 
private membership organization that pro- 
vides a core for business, personal and cul- 
tural life. It has also established reciprocal 
relationships with prestigious clubs in Hong 
Kong, Taipei, Singapore and China. 

Its membership in 1990-91 was 675, the 
majority of whom were Chinese with about 
20% non-Chinese. Members are mainly doc- 
tors, lawyers, accountants and real estate 
investors - a fact which the Club hopes will 




Dragon City - the Mandarin Club 
revamp the image of the Hong Kong 
investor from that of a small-time operator 
to someone "to be taken seriously." It is now 
planning to solicit members in Hong Kong. 
Apart from inviting prominent people to 
speak during special dinner events and from 
being a centre for business networking, the 
Club also provides members, many of 
whom are new immigrants, with a superb 
Cantonese cuisine and dining environment, 
as well as recreational and health facilities. 
A major undertaking last year was the pur- 
chase of a $7.5 million golf club in 
Richmond Hill. 
280 Spadina Ave. 
Toronto, OnL M5T 3A5 
Chair: Herbert Chang 
(416)979-7110 

Chinese Chamber of Commerce 
(East Toronto) 

Chinatown East includes the Broadview, 
Eastern, Greenwood and Danforth areas. 
Although it is not as big as Chinatown West 
(Spadina and Dundas), it already comprises 
about 400 stores, most of which are restau- 
rants, groceries and beauty salons. About 
half of these businesses have joined the 
CCC (East Toronto). 

The CCC East was established seven 
years ago to promote cooperation among 
Chinese-Canadians and other Canadians 
and to provide a liaison with different levels 
of government to ensure the security and 
success of businesses in the neighbourhood. 
In the past two years, the CCC has worked 
with both municipal and provincial govern- 
ments to improve the garbage and parking 
problems as well as crime prevention in the 
area. It also sponsors cultural activities such 



as the Canada Day celebration and 
Chinatown East Week to enhance inter-cul- 
tural understanding. Its president and one of 
the ten founders of the organization, Mr. 
Victor Lee, seeks to increase the number of 
Chinese -speaking employees in government 
and social service agencies in the area. 

Currently, the CCC hopes to secure the 
support of at least two-thirds of local busi- 
nesses to bring Chinatown East under the 
umbrella of the Business Improvement Area 
(BIA) program On a wider scale, Mr. Lee 
is working with two other Chinese business 
associations - the Toronto Chinese Business 
Association and Scarborough/North York/ 
Markham Business Association - to estab- 
lish a Chinese Business Association of 
Ontario. Its main purpose would be to han- 
dle issues concerning Chinese Canadians at 
the provincial and federal levels. There are 
also plans to establish a national organiza- 
tion to represent Chinese Business 
Associations in Canada. 

Chinese Student Organizations at 
University of Toronto 

1) Association of Chinese Students and 
Scholars (ACSS) 

Funded by the Chinese Embassy in 
Toronto, the ACSS emphasizes social rather 
than political activities. Its main objective is 
to provide assistance to Chinese students and 
scholars at the university during their stay in 
Canada. Activities include outings, dances, 
Chinese film shows and counselling. 
Membership, which is presently 480, is lim- 
ited to PRC students, visiting scholars and 
their spouses. The ACSS is affiliated with 
the national Federation of Chinese Students 
and Scholars in Canada (FCSSC). 
Contact person: Fang Jun 
Massey College, 4 Devonshire PI. 
Univ. of Toronto 
Toronto, Ont. M5S 2E1 
(416) 348-9003 

2) Mandarin Chinese Students' 
Association 

Formed in October 1990, this organiza- 
tion aims to provide social events for 
Mandarin-speaking students. Its member- 
ship, now over 180, consists primarily of 
students from Taiwan but also includes 
some from Hong Kong and Mainland China. 
Contact person: Vivien Tang 
81 Wilkinson Dr. 
Willowdale, Ont. M2J 3Z6 
(416) 499-3549 

Associations, cont'd, page 18 



UPDATE 17 



Associations, from page 17 

3) Univ. of Toronto China Affairs 
Association 

First registered at U. of T. in September 
1989 as the Association of U. of T. Chinese 
Students Concerned for the Student 
Movement in China, it was started in 
response to the 1989 massacre in Peking. At 
the time it had a membership of 50-60 peo- 
ple, the majority of whom were students 
from Hong Kong but also included some 
Canadian Chinese and non-Chinese. This 
past year it has kept a low profile and has 
only about 10-20 active members, all of 
whom are students from Hong Kong. About 
half of these are visa students. 

Concerned with current affairs in China 
and Hong Kong, it was very active in the 
summer and fall of 1989. Its activities 
included issuing statements, organization of 
study groups and film shows and the publi- 
cation of news updates. It also organized a 
signature campaign to petition the Foreign 
Minister of Canada and the Prime Minister 
of Britain for support of Hong Kong peo- 
ple's right of abode in Britain. 
Contact person: Patrick Ma 
Apt. #806, 401 Queen's Quay West 
Toronto, Ont. M5V 2Y2 
(416) 280-1898 

4) The University of Toronto Chinese 
Alumni Association (UTCAA) 

Composed of about 50 graduates from 
U. of T., the main purpose of this organiza- 
tion is to maintain the contacts of Chinese 
students after graduatioa Most of these stu- 
dents were active as undergraduates in the 
Chinese Students' Association. 
Contact person: Dominic Su 
248 Alexmuir Blvd. 
Scarborough, OnL M1V 1T7 
(416) 754-0896 

Chinese Student Organizations at 

York University 

1) York Univ. Chinese Students' 

Association 

This association was formed in the late 
1970's with the aim of helping Chinese stu- 
dents adjust to and integrate into the univer- 
sity community. Its primary activities on 
campus are social, including participation in 
York Multicultural Week. It also publishes 
a newsletter for members, in addition to 
supporting the Chinese campus newspaper 
Jin Xue. Its functions beyond the campus 
include participation in the 1991 United 



Way Walkathon and the coordination of 14 
Chinese Students Associations of Ontario in 
fund-raising efforts for China flood relief. 

The majority of members come original- 
ly from Hong Kong and are divided almost 
equally between visa students and landed 
immigrants. There are also several members 
from Taiwan and Southeast Asia. The orga- 
nization is open to all undergraduates, 
including Canadians of non-Chinese back- 
ground. It is partly funded by the Y.U. 
Federation of Students and partly by mem- 
bership fees and the annual fund-raising 
dance. 

Contact person: Angus Chan 
Student Centre, Suite 448 
York University 
North York, Ont. M3J 1P3 
(416) 490-6817 
hotline: 736-2100, ext. 20495 

2) York Univ. Chinese Alumni 
Association 

This newly formed association (Sept. 
1991) is the first cultural alumni chapter 
supported by York University. It was found- 
ed by five graduate students who feel there 
is a need to maintain communication after 
graduation, especially since many former 
students return to Hong Kong to work and 
subsequently re-enter Canada as immi- 
grants. As the Association is open to all 
interested undergraduates and graduates, its 
membership is expected to be large. It plans 
to publish a newsletter and will support 
Chinese alumni at other universities in 
forming their respective alumni associa- 
tions. 

Chairperson: Angus Chan 
c/o York Alumni Association 
West Office Building 
York University 
North York, Ont. M3J 1P3 




Chinatown East, Toronto 



Bill of Rights Conference 

To mark Hong Kong's entry into a new 
legal era, the Faculty of Law of the 
University of Hong Kong held a three day 
conference on the Bill of Rights at the end 
of June. The conference was sponsored in 
part by the Government of Canada, which 
has shown a sympathetic attitude towards 
the introduction of a bill of rights. Canada, 
as one of the few common law countries to 
have a charter of rights, is also well placed 
to give help to Hong Kong legal authorities 
in implementing their new bill, especially 
through the use of case law. 

Wang Gungwu, the Vice Chancellor of 
the University of Hong Kong, opened the 
conference. He underlined the importance 
of the execution of the Bill of Rights (on 
June 8, 1991), but warned that the Bill was 
not perfect in itself. Its implementation 
depended on the probity and honesty of 
lawyers, on the maintenance of the rule of 
law, and on the value given to human rights 
by the people of Hong Kong. 

The keynote speaker was Sir Derek 
Cons, Vice-President of the Court of 
Appeals of the Supreme Court of Hong 
Kong, who spoke about the challenges of 
implementing a bill of rights. Philip Dykes, 
the Assistant Solicitor-General of Hong 
Kong, was caught in the Philippines by the 
eruption of Mount Pinatubo. His speech, 
which was read for him, described the evo- 
lution of the Hong Kong Bill of Rights. He 
made reference to the role in drafting the 
Bill played by Mr. Justice Barry Strayer, of 
the Federal Court of Canada. 

Another absent speaker was Professor 
Gong Xiangrui, of Peking University, who 
was, for unspecified reasons, unable to 
attend the conference. His paper, which was 
read by the conference convenor, Dr. 
Johannes Chan of the University of Hong 
Kong, came out in favour of both Hong 
Kong and China moving with the 'interna- 
tional flow towards human rights,' but 
noted that human rights required freedom of 
expression and assembly and the tolerance 
of minority opinions. Professor Gong's 
absence was the subject of considerable 
press coverage; he was interviewed from 
Peking by telephone but could give no clear 
reason why he had not been able to go to the 
conference. The assumption in the Hong 
Kong press and at the conference was that 
the conclusion of his paper - that the Bill of 
Rights was not incompatible with the Basic 



18 UPDATE 



Law - was the cause of his absence. 

The Canadian speakers at the conference all 
presented analyses of the working of the 
Charter of Rights in Canada. Chief 
Superintendent Cummins (Vancouver 
RCMP) reassured the audience that the Charter 
had not proved to be a 'criminals' charter' and 
that although the Charter had forced some 
changes in law enforcement, it had not diluted 
its effectiveness. Professor Rosemary Cairns 
Way (University of Ottawa) spoke about the 
revitalising role of the Charter within Canadian 
legal process. Judge Walter Tamopolsky 
(Ontario Supreme Court of Appeal) delivered 
a paper on equality and discriminatory prac- 
tices. Retired Supreme Court Justice Bertha 
Wilson spoke about the effect that the Charter 
has had on the rights of women. 

Frank Stock, the Hong Kong Solicitor 
General spoke of the challenge of the Bill of 
Rights, and of Hong Kong's duty to give it life. 
He thanked Canada for her help in bringing it 
into being and said that Justice Strayer's advice 
had been of immeasurable value. 

The first challenge under the Bill, on June 
26th, came just after the conference. In district 
court, Judge Cameron refused to sign orders 
preventing three people who owed taxes from 
leaving Hong Kong, on the grounds that 
Section 8 of the Bill of Rights gives people the 
right to leave the territory. Judge Cameron was 
reported as saying that 32 orders had been 
signed since June 8th, the day the Bill became 
law, but only after the conference did judges 
become aware that such orders might be in 
contravention of the Bill. 



Legal Issues Workshop 

by William Angus 
Toronto 

Entitled "Canada-Hong Kong: Some Legal 
Considerations," a workshop, sponsored by the 
Canada and Hong Kong Research Project of 
the Joint Centre for Asia Pacific Studies, was 
held June 26, 1991, at Robert Black College of 
the University of Hong Kong. Jointly orga- 
nized with the UHK Faculty of Law, the work- 
shop was convened by Johannes Chan of the 
UHK Law Faculty and William Angus from 
Osgoode Hall Law School of York University. 
Vice-Chancellor Wang Gungwu of the 
University of Hong Kong opened the proceed- 
ings with some amusing and thoughtful obser- 
vations of historical and legal dimensions. The 
ensuing sessions were chaired by Diana Lary 



of York University and Johannes Chan. 

Proceedings focused on the presentation of 
five papers: "Hong Kong's International 
Personality: Issues and Implications" by Roda 
Mushkat from the host Law Faculty, "Coming 
and Going Under Immigration and Refugee 
Law" by William Angus; "Personal and 
Corporate Status in Hong Kong" by Philip 
Smart of the UHK Faculty of Law; "Civil 
Proceedings Arrangements between Hong 
Kong and Canada: Service of Documents, 
Taking of Evidence and Enforcement of 
Judgments" by Maurice Copithome from the 
Faculty of Law at the University of British 
Columbia; and "Extradition Between Hong 
Kong and Canada" by Janice Brabyn of the 
Faculty of Law, UHK. 

Following each paper, the approximately 
25 invited guests from various Canadian and 
Hong Kong backgrounds discussed its content 
and offered further observations. The revised 
papers will shortly be published as a mono- 
graph by the Canada and Hong Kong Project. 

In view of the success of this workshop, its 
convenors are considering a similar proceeding 
in Toronto during the Hong Kong in Canada 
Festival next fall 



Media Workshop 

by Janet A . Rubinoff 
Toronto 

Another Project workshop, 'Dialogue on 
Hong Kong: Coverage of Hong Kong Issues 
in the Canadian Media," was held in 
Vancouver on June 15, 1991. The workshop 
was co-sponsored by the Asia Pacific 
Foundation of Canada. The 30 invited partici- 
pants included members of the English and 
Chinese Canadian media as well as academics 
and representatives from provincial and feder- 
al government agencies, the Hong Kong 
Trade Development Council, the Asia Pacific 
Foundation, the Vancouver and Toronto 
police, and local Chinese-Canadian communi- 
ty organizations. 

The workshop opened with remarks by 
Graeme McDonald, President of the Asia 
Pacific Foundation, who stressed the growing 
mutual interdependence of Canada and Hong 
Kong - not only in terms of business and trade 
but also in terms of human relationships and 
ideas. Four sessions focused on media cover- 
age of investment and trade, the impact of 
Hong Kong immigration, political issues, and 
special concerns including immigrant prob- 



lems, Chinese-language coverage and ethical 
aspects. Highlights of the discussions included 
the substantial growth and importance of 
Hong Kong investment in Canada, the effec- 
tiveness of Business and Entrepreneur 
Immigrant Programs from both provincial and 
federal perspectives, the changing focus of 
immigration flows to Canada and government 
planning, and the tendency of the press to 
emphasize the more negative rather than posi- 
tive aspects of this immigration process. 

Of particular concern was the sensitive 
issue of reporting "Asian Crime," avoiding 
stereotypes, and the importance of disseminat- 
ing accurate information to the press, includ- 
ing statistics on crimes committed by Asian 
immigrants and refugees. Other topics dis- 
cussed in the afternoon sessions included civil 
rights in Hong Kong and coverage of complex 
legal issues such as the new Bill of Rights, the 
media in Hong Kong and its reporting of 
Canadian issues that affect immigration, dif- 
ferences in the emphasis of Qu6bec's immi- 
gration policy and its effect on Chinese- 
Canadians. Issues raised included the predom- 
inant negative images of new Hong Kong 
immigrants in the press, the reporting on prob- 
lems experienced by Asian newcomers to 
Canada, and the specific problems of the 
Chinese-language press in covering Hong 
Kong immigration issues. Peter Desbarals, 
Dean of the Graduate School of Journalism at 
the University of Western Ontario, concluded 
the workshop with a discussion of broad ethi- 
cal issues in press coverage, such as the prob- 
lems of sensationalism, competitiveness and 
negativism He emphasized the positive devel- 
opments of a more diversified media and bel- 
ter educated, self-critical reporters. 

The list of speakers included Victor Fung 
of the Financial Post, Louis Ferguson and 
Mildred Morton of Employment and 
Immigration Canada; John Gray, Director of 
Business Immigration, Government of British 
Columbia; Kevin Griffin from the Vancouver 
Sun, Sgt. Benjamin Eng, Metropolitan 
Toronto Police; Prof. Maurice Copithome 
of UBC, Faculty of Law; Prof. Anthony 
Chan, School of Communications, Univ. of 
Washington; Luc Chartrand of I'Actualite; 
Prof. Bernard Luk, Dept. of History, York 
University, Paul Tsang from Sing Too 
Newspapers, Vancouver; and Prof. Peter 
Desbarats, Univ. of Western Ontario. A 
transcript of the proceedings is in prepara- 
tion and will be available soon from the 
Joint Centre for Asia Pacific Studies. 



UPDATE 19 



CANADA AND 

HONG KONG UPDATE 



Editors Diana Lary 

Janet A. Rubinoff 

Illustration & Design 

IMS Creative Communications 

Contributors William Angus 
Phil Calvert 
Susan Henders 
Paul L.M. Lee 
Paul Levine 
D. Wendy McCallum 
Bob Perrins 
Hugh XiaobingTan 
Irene Tong 

Canada and Hong Kong Update is 

published three times a year by the 
Canada and Hong Kong Project, 
Joint Centre for Asia Pacific Studies. 
The Joint Centre has recently moved 
its offices. (Please note our new 
address and fax number.) 
Suite 270, York Lanes, 
York University, 4700 Keele St, 
| North York, Ontario, 
CANADA M3J 1P3 

Telephone: (416)736-5784 
Fax:(416)736-5688 

Opinions expressed in this newsjoumal 
are those of the author alone. 



CANADA AND HONG KONG PROJECT 



Director 

Coordinator 



Diana Lary 
Janet A. Rubinoff 



Advisory Board David Bond 
Denise Chong 
Maurice Copithome 
Dr. Bernie Frolic 
John Higginbotham 
Graeme McDonald 
Dr. T.G. McGee 
Jules Nadeau 
Dr. William Saywell 
Dr. Wang Gungwu 

We want to thank the Dormer Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada' s international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 

This publication is free. 

Please call or write to us for past 

or future issues. 



Hong Kong Seminar at 
CASA Meetings 
Brock University 

by Bob Perrins 
Toronto 

A session devoted to Hong Kong issues 
was one of the best attended at the recent 
Canadian Asian Studies Association (CASA) 
conference held at Brock University, October 
4-6, 1991. The high turnout for this session 
reflects a heightened interest in Hong Kong 
amongst not only the general population but 
also within the community of specialists in 
East Asian Studies. As 1997 draws near 
scholars are attempting to understand the 
colony's past and present as well as to formu- 
late various scenarios of what the future may 
hold. The papers that were presented at Brock 
University reflect these efforts and demon- 
strate that no consensus exists regarding Hong 
Kong's post-1997 status. 

Claude Comtois of the Universite de 
Montreal addressed the historical role that 
Hong Kong has played as a trading and finan- 
cial hub in Britain's relations with China. He 
discussed the recent Sino-British negotiations 
over the PADS project and placed them with- 
in a historical context His paper analyzed the 
short, medium and long-term implications of 
the final settlement Dr. Bernard Luk of York 
University addressed the fact that Hong Kong 
as a distinct entity has largely been neglected 
by historians; he concluded that as much 
research as possible must be conducted soon 
for scholars' access to sources after 1997 is of 
some doubt 

Maurice Copithome of the University of 
British Columbia presented a paper on the 
history of Hong Kong's involvement and 
membership in numerous international bod- 
ies. Professor Copithome contended that the 
colony's legal position within these bodies is 
well established, and he predicted that Hong 
Kong will retain some degree of indepen- 
dence and identity after 1997 because of its 
membership in these international agencies. 
Sonny Lo from the University of Toronto dis- 
cussed the problem of perception in Sino- 
British relations with regard to Hong Kong. 
He noted that a great deal of misunderstand- 
ing on both sides has resulted in recent acri- 
monious negotiations, most notably those that 
dealt with the PADS project Professor Ruth 
Hayhoe of the University of Toronto (Ontario 
Institute for Studies in Education) chaired the 
session, and Jules Nadeau of the Universite 
du Quebec a Montreal was the discussant 



Future Workshops 

Two Project workshops will be 
held in January of 1992. The first, 
"Quebec et Hong Kong," will be 
held on January 8th at the 
Universite du Quebec a Montreal 
and will focus on Quebec immi- 
gration issues and policies. The 
convenors are Prof. Claude-Yves 
Charrron and Jules Nadeau, both 
of the University du Quebec a 
Montreal, department de commu- 
nications. 

The second workshop, "Hong 
Kong-China Relations: Economic 
and Social Dimensions," is sched- 
uled in Vancouver at the 
University of British Columbia on 
January 17-18th. Jointly convened 
by Prof. Graham Johnson of the 
Department of Anthropology and 
Sociology, UBC and Prof. B. 
Michael Frolic, Department of 
Political Science, York University, 
the workshop will explore eco- 
nomic and cultural aspects of the 
relationship between Hong Kong 
and South China. 



New Books and 
Articles on Hong Kong 

The Hidden Establishment: The Inside 
Story of Canada's International 
Business Elite, by Brian Milner, Viking, 
1991. 

"From a Segregated Minority to 
Chinese Citizens: the Hong Kong 
Immigrants in Toronto," by Makio 
Morikawa, in Proceedings of the First 
Tsukuba Seminar on Canadian Studies, 
1990, pp. 100-17. 

"Personal Relations and Divergent 
Economies: a Case Study of Hong Kong 
Investment in South China," by Alan 
and Josephine Smart, in International 
Journal of Urban and Regional 
Research, v.15, no.2, 1991, pp. 216-233. 




c 

I 




^m* 





CANADA AND HONG KONG UPDATE 



Number 6 




WINTER 1992 



HSTIVALHONC; KONG 9 



Bridge Across the Pacific ■ ££ ^ Wfc 5% : M 7)Q IW ■ Pont Sur Le Pacifique 



Festival Hong Kong 92. to be held this 
autumn, is the second of the reciprocal festi- 
vals celebrating the Canada/Hong Kong rela- 
tionship. Festival Canada was held in June 
last year (see Update 5). While all of Festival 
Canada's events were held in one place, the 
size of Canada means that Festival Hong 
Kong will be held in several cities. It will 
start with a gala function in Toronto. Festival 
events in Toronto will be spread over the 
week September 28-October 4. During 
October, Festival celebrations will be held in 
Ottawa, Montreal, and Calgary and will end 
in Vancouver on October 22. The governor 
of Hong Kong is expected to attend the 
Vancouver part of the Festival. (The present 



governor. Sir David Wilson, visited Ottawa 
and Toronto in 1990, but was not able to visit 
Vancouver then). 

The motto of Festival Hong Kong is 
"Bridge across the Pacific/Pont sur le 
Pacifique." Some of the events of the 
Festival will originate in Hong Kong and will 
be coordinated by a steering committee there 
which is chaired by the secretary for 
Recreation and Culture. These events will 
include cultural and sporting events, a film 
festival, trade seminars and store promotions. 
Local committees in the five places where 
Festival activities will be held (Calgary. 
Montreal, Ottawa, Toronto, and Vancouver) 
will be organizing a complementary program 



to bring in local organizations with an inter- 
est in Hong Kong. These will include busi- 
ness, academic, cultural and social activities. 

Some of the funding for the Festival will 
be provided by the Hong Kong Government, 
and other parts will be raised from private 
sponsorships as was the case with Festival 
Canada. 

An office has been set up in Toronto by 
the Hong Kong Government to provide 
information on the Festival: 

Tony Dickinson Agnes Tse 

Festival Administrator Assistant Festival 
Administrator 

Suite 5900, One First Canadian Place. 

Toronto M5X 1K2 

Tel: (416)777-2209 FAX: (416) 777-2217 



IN THIS ISSUE: 

Festival Hong Kong '92 1 

Emigration of Business & Professionals 2 

Hong Kong Recruitment 4 

The Points System and its Implementation 4 

per 

F1029.5 
H6 C36 



Pre-migration Programs in Hong Kong 5 

Immigration Applications 6 

British Parliament. Citizenship & HK Indians. .6 

Beijing Update 8 

Political Implications of Lu Ping's Visit to HK 8 
Canadian Politicians. China & Hong Kong 9 



Canadian Organizations in Hong Kong 1 1 

Goddess of Democracy Erected at UBC 12 

West's Democracy Push 13 

HK Visa Students in Metro Toronto 14 

Quebec-Hong Kong Colloque 15 

Hong Kong and Its Hinterland Workshop 16 



CANADA AND 


HONG KONG UPDATE 


Editors 


Diana Lary 




Bernard Luk 




Janet A. Rubinoff 


Illustration & 


IMS Creative 


Design 


Communications 


Contributors 


Philip Calvert 




Harriet Clompus 




Rup Narayan Das 




Jane Greaves 




Paul L.M.Lee 




Alan Nash 




Shum Kwok-cheung 




Hugh Xiaobing Tan 



t anada and Hong Kong Update is 
published three times a year by the 
Canada and Hong Kong Project 
Joint Centre for Asia Pacific Studies. 
Suite 270. York Lanes, 
York University, 4700 Keele St., 
North York, Ontario, 
CANADA M3J 1P3 

Telephone: (416) 736-5784 
Fax:(416)736-5688 

Opinions expressed in this newsjoumal 
are those of the author alone. 



CANADA AND HONG KONG PROJECT 

Dun tor Diana Lary 

Assoc. Director Bernard Luk 



Coordinator 



Advisory Board 



Janet A. Rubinoff 

David Bond 
Denise Chong 
Maurice Copithome 
B. Michael Frolic 
John Higginbotham 
Graeme McDonald 
T.G. McGee 
Jules Nadeau 
William Saywell 
Wang Gungwu 



We want to thank the Donner Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 



This publication is free. 

Please call or write to us for past 

or future issues. 



The Emigration of Business People and 
Professionals from Hong Kong 



by Alan Nash 
Concordia University, Montreal 



The effects of emigration upon Hong 
Kong have been the focus of considerable 
controversy among academics, journalists, 
government officials and business people. 
Certainly, the evidence is not always as 
unambiguous as one might wish. 
Nevertheless, the broad outlines of the pic- 
ture are beginning to emerge, and it is the 
purpose of this article to report on research 
in two areas of current concern: the emigra- 
tion of business people and professionals. 

First, let us consider the emigration of 
professionals. The annual movement of 
those in the category defined as "profes- 
sionals, managers, administrators and tech- 
nicians" from Hong Kong has represented 
approximately a quarter of the colony's 
total losses through emigration since 1987. 
The annual figures are estimated to be 
7,400, 1 1.200. 9.800 and 14,500 respective- 
ly. However, Paul Kwong [The Other Hong 
Kong Report 1990] has argued that such a 
figure of 24%. the official government esti- 
mate, gives a misleading picture of the true 
extent of these losses. 

He gives three reasons. First, if these 
emigration statistics are re-expressed 
according to the number of families leav- 
ing, then the emigration of those headed by 
professionals would be responsible for 62% 
of the total number of families leaving the 
colony. Second, in terms of their impact on 
the existing size of particular professions in 
Hong Kong, as measured by the 1986 cen- 
sus, the losses can be severe. Calculations 
for the period 1987-1988 indicate "deple- 
tion rates" of 10% for Hong Kong's stock 
of engineers, 13% for doctors and dentists, 
and 35% for the colony's computer pro- 
grammers and system analysts. Third, 
although professional, administrative and 
managerial losses are portrayed as only 
24% of Hong Kong's emigration losses, 
they in fact represent 50% of the colony's 
annual emigration of "economically-active" 
people. If this estimate is correct and such 
rates of emigration continue until 1997, 
then as Ronald Skeldon has recently 
remarked, "perhaps a quarter of a million of 
Hong Kong's best and brightest will depart 
before the Chinese takeover" [Pacific 
Affairs 63. Winter 1990-91 : 5 10). 



Certainly, many more professionals have 
expressed their desire to leave the colony in 
the future. A recent article in the prestigious 
American magazine. The Atlantic Monthly, 
(April 1991 ) argued that 98% of Hong 
Kong's pharmacists, 80% of its accountants 
and 63% of the govern rent's doctors were 
planning to leave the colony before 1997. 
That such estimates are not exaggerated is 
clear from a comparison with the careful 
examination conducted by Kwong. His data 
show that of the colony's accountants, 66% 
of a group of 4,600 surveyed in late 1989 
had applied for foreign passports, and an 
additional 27% planned to emigrate. Of the 
colony's pharmacists, 48% of an early 1990 
survey already held foreign passports, and a 
further 43% planned to emigrate. Overall, 
the best summary of the situation is provid- 
ed by Hong Kong's Institute of Personnel 
Management (IPM). On the basis of a 1989 
survey of its membership, IPM argued that 
approximately 50% of all personnel man- 
agers, engineers and bankers would "proba- 
bly" or "definitely" leave the colony by 
1997. Indeed, Patrick Maule, the principal 
investigator of the IPM survey, remarked in 
late 1989 that "the proportion of profession- 
als wishing to emigrate could have reached 
71% by now." 

The effects of this large and ongoing 
loss of professionals on Hong Kong are 
already profound. Commentators have 
drawn attention to the growing labour short- 
age in the colony (over 120.000 in 1989), to 
the current acute shortage of certain groups 
(such as teachers and pharmacists), to the 
need to increase salaries in order to encour- 
age key workers to remain (by as much as 
27% in some sectors), to the loss of educat- 
ed workers (almost 15% of Hong Kong 
emigrants in 1989 had degree-level educa- 
tion, compared to a figure of only 3.5% for 
the general population), to increased staff 
turnover (as much as 33% in some cases) 
and, unfortunately, to fraud and corruption 
as unscrupulous individuals from Hong 
Kong and elsewhere have sought to meet 
the demand for foreign passports. 

The Asian Development Bank in its 
comments on Hong Kong contained in the 
report, Asian Development Outlook for 



2 UPDATE 



1991, concluded that "weak fixed invest- 
ment growth and continued emigration of 
professionals and skilled workers have lim- 
ited the capacity for an early return to the 
high growth rates experienced in the past." a 
\ lew w ith which the firm Price Waterhouse 
has recently concurred. In the face of this, it 
is perhaps little wonder that businesses have 
begun to leave the colony. In this respect, 
Cathay Pacific's recent move of its comput- 
ing operations to Australia is but one exam- 
ple of a grow ing trend. 

Businesses have also began to leave 
Hong Kong in growing numbers because of 
the recent development, particularly by 
Canada and Australia (and in the USA since 
1990), of another stream of emigration - 
one specifically targeted at entrepreneurs 
and investors in the colony, that of "busi- 
ness migration." Indeed, it could be argued 
that both these countries have tolerated the 
large increase of Hong Kong immigration in 
recent years because it brings with it 
entrepreneurs and investors. Certainly, it 
appears that business migration programs in 
both countries have become increasingly 
tailored to meet the needs of the Hong Kong 
business person. 

The Canadian business migration pro- 
gram, which has been in operation since 
1978. has three components: the "self- 
employed" (who are required to create their 
own employment), the "entrepreneur" (who 
must establish a business that hires at least 
one Canadian), and the "investor" (who 
must possess a minimum net personal worth 
of Cdn$500.000 and must commit at least 
Cdn$250,OOO for a five year period to an 
investment that contributes to business 
development and job creation, a component 
only in operation since January 1986). Of 
these three, the entrepreneur component has 
comprised approximately 75% of all admis- 
sions made under the program. The 
Australian program (which operated 
between 1976 and 1991 when it was 
replaced by an "independent-business 
skills" category) sought those who would 
transfer to Australia assets of at least 
Aus$500,000 "for the purposes of engaging 
in a commercial enterprise of benefit to 
Australia." 

Data for these programs show that busi- 
ness migration was responsible for 15% 
(4,760) of all Hong Kong immigration into 
Australia between 1982 and 1988, and for 
19% (7,574) of Hong Kong immigration 
into Canada over the years 1987 to 1988. It 



is aKo worth noting that Hong Kong busi- 
ness migrants account for the majority of 
those entering Canada and Australia under 
such programs. ( )t the total number of 
entrepreneur and investor immigrants who 
arrived in Canada in 1988 (4,437), those 
from Hong Kong accounted for 37'< or 
1 ,633 cases. Of the total number of 1 ,864 
business migrant visas issued in Australia 
between July 1988 and March 1989, Hong 
Kong cases accounted for 887 or 48< < of the 
total. 

An impression of the economic impact 
on Hong Kong of such business migration 
to Australia and Canada can be readily 
gained from the following statistics. During 
the three year period 1984 to 1986. Hong 
Kong entrepreneur migrants planned to cre- 
ate or retain 1 1 ,979 jobs in Canada; those 
arriving in 1988 alone planned to create or 
retain 8.654 jobs. Of more concern, perhaps, 
are the data on the movement of funds. By 
1989 the total amount of funds transferred 
to Canada by all migrants from Hong Kong 
in that year was Cdn$3.5 billion, of which 
some $2.21 billion or 63% was to be trans- 
ferred by the business migration compo- 
nent. Since it is estimated that the total dol- 
lar flow (including investments) from Hong 
Kong to Canada in 1989 was approximately 
Cdn$5 billion, this means that business 
immigration from Hong Kong was responsi- 
ble for 44% of the total flow of funds in that 
year and overall immigration from Hong 
Kong for 70%. 

Data for 1990 are still very preliminary, 
but the consensus points to a figure of 
approximately CdnS4 billion as the amount 
estimated to be transferred by all emigrants 
from Hong Kong to Canada. In fact, such a 
figure is quoted in the official Canadian 
government briefing book used for Prime 
Minister Brian Mulroney's 1991 visit to the 
Crown Colony. If we assume that the pro- 
portion of this flow contributed by business 
migration remains the same as in 1989. this 
would mean that some Cdn$2.5 billion was 
transferred by business migrants to Canada 
from Hong Kong in 1990. 

Turning to Australia. Kwong has esti- 
mated that the 900 business migrant fami- 
lies from Hong Kong who received visas in 
1989-90 transferred Aus$432 million to 
Australia in that fiscal year. This figure rep- 
resents 84% of that transferred by all Hong 
Kong migrants to Australia in 1989-90. a 
total of Aus$512 million. 



As far as Hong Kong itself is concerned. 
business migration programs are clearK 
responsible for significant losses in both 
business people and funds to the colony. 
During the year 1988-89 alone, a total ol 
2,520 business people emigrated from Hong 
Kong to Canada and Australia where they 
planned to create 15,750 jobs. Those that 
had left during 1987-88 indicated that the) 
were transferring a total of HKS14.7 billion 
out of the colony, those that left in 1989-90 
took approximately HKS 15.64 billion. 
According to one Australian banker, this 
figure represents almost half the entire 
amount transferred by all Hong Kong 
migrants and investors to these two coun- 
tries in 1989 and 25% of the total world- 
wide transfer of funds from the colony in 
that year. Such figures are estimates for 
only annual periods. Clearly, the total loss 
to the colony from the inception of such 
programs to at least 1997 can only be 
guessed at. but must be of considerable 
magnitude. 

The challenge that Hong Kong now 
faces, therefore, is how to solve the many 
problems posed by such a drain of skills and 
resources due to the emigration of profes- 
sionals and business people. It would be 
inhumane and illegal under international 
law to prevent emigration from the colony. 
However, it is not with such a response that 
the solution lies. Rather, existing govern- 
ment policies to combat the problem should 
continue. These have been styled "retain 
and retrain" in the case of those designed 
directly to combat the brain drain, and "new 
crew" in the case of those designed through 
education and overseas recruitment to 
replace those lost to Hong Kong. Moreover, 
the potential of the one major influx of pop- 
ulation that Hong Kong has received - and 
most commentators ignore in this regard - 
its refugee and illegal immigrant population 
of approximately 50.000. ought not to be 
overlooked by the Hong Kong authorities. 

However, as the evidence abundantly 
indicates, these strategies alone are inade- 
quate. For example, by February 1991 far 
fewer people than expected had applied for 
British citizenship - an important plank in 
the scheme to retain key workers in Hong 
Kong. Evidently, the lack of Chinese com- 
mitment to recognize such arrangements 
after 1997 and the unattractiveness of the 
British economy relative to that of North 
America have effectively eliminated this 
approach as a solution. 

Emigration, cont'd page 4 



UPDATE 3 



Emigration, cont'd from page 3 

Similarly, despite HK government opti- 
mism, return migration rates are woefully 
low, and recruitment campaigns overseas 
have so far achieved very little. The Hong 
Kong Social Welfare Department's 1989 
campaign only resulted in seven Canadian 
applicants (only two of whom could come 
in 1990), whereas total vacancies totalled 
593 posts. Expanded tertiary education also 
faces ever-increasing losses as students 
themselves go overseas. 

Rather, the answer rests with those coun- 
tries that have sought after Hong Kong's 



business emigrants and professionals. They 
must be persuaded to renounce the lure of 
what seems to be "easy money" and skills, 
and instead to demonstrate their professed 
faith in Hong Kong's continued economic 
future. The various business migration pro- 
grams that these countries have focused on 
Hong Kong, by their very nature, clearly do 
not do this. Therefore, at the very least. Hong 
Kong ought to insist that they be abandoned 
and demand that they be replaced by sup- 
portive economic policies and emigration 
programs which are sensitive to the needs of 
Hong Kong rather than to those of the USA, 
Britain, Canada or Australia. 



Hong Kong Recruitment 



Emigration from Hong Kong, plus eco- 
nomic expansion, has created a shortage of 
skilled manpower which by 1996 will be 
acute. Even the rapid expansion of tertiary 
education will not be enough to prevent a 
shortfall of over 30% in Hong Kong's needs 
in 1996 [John Chan, Secretary for 
Education and Manpower, speech, 19 July 
1991]. One of the ways in which this short- 
fall will be filled is by recruiting qualified 
overseas people, including emigrants from 
Hong Kong now living abroad. The govern- 
ment of Hong Kong has entered into a joint 
venture with the Hong Kong Institute of 
Personnel Management, the Hongkong 
Bank, and other private sector interests to 
set up Hong Kong IPM Manpower 
International. This is a non-profit company 
whose task will be to identify qualified 
applicants abroad and match them with 
Hong Kong employers. Toronto is to be a 
major focus of activity, given the large 
number of potential candidates there. The 
company is also setting up a computer data 



1 M\M Mm U4ii. 
1 B^H^D 





base, IPM-NET, which will allow overseas 
candidates to learn about vacancies in Hong 
Kong and employers in Hong Kong to iden- 
tify suitable candidates for jobs. 

One area where the shortage of local 
candidates is most acute is in the Hong 
Kong university system. At the end of 
November, the Hong Kong Trade 
Development Council in Toronto arranged a 
major event for the seven publicly-funded 
institutions of tertiary education in Hong 
Kong, at the Metro Toronto Convention 
Centre, called "Accept the Challenge: 
Career Opportunities in Tertiary Education 
in Hong Kong." The purpose was to provide 
information for people interested in working 
in Hong Kong's universities. This was the 
first of five sessions (the others were held in 
Chicago, San Francisco, London and 
Glasgow) whose object was to recruit new 
staff for the burgeoning tertiary education 
sector in Hong Kong and to replace aca- 
demics who have emigrated from Hong 
Kong. 

Thomas Wu, one of the organizers of the 
event, estimates that from 400-500 people 
attended the Toronto seminar, and over 1 70 
resumes were received from prospective job 
applicants. Over the next three years, the 
HK Trade Development Council hopes to 
recruit from 2000-3000 people for a variety 
of university positions. Plans are now in 
progress for similar seminars in Australia, 
Singapore and Taiwan for the late spring; 
another recruitment event is also planned 
for Toronto in the fall to coincide with 
Festival Hong Kong '92. 



The Points System and its 
Implementation 

Independent immigrants to Canada are 
processed on a point system which mea- 
sures a variety of personal attributes, includ- 
ing the demand for a particular occupation 
in Canada. Though most categories within 
the point system do not change, the weight- 
ing for occupational demand does, in rela- 
tion to the employment situation in Canada. 
Information on weightings is published by 
the CEIC regularly and in an area of emi- 
gration such as Hong Kong, is republished 
in the local media. The weightings are of 
great concern to potential emigrants because 
a low score may put an applicant below the 
70 points required to qualify for immigrant 
status. 

In the process of application, a would-be 
immigrant first fills in a pre-application 
questionnaire (PAQ). which is checked to 
see whether it is worth making a formal 
application. PAQs normally run far above 
formal applications. The purpose of the 
PAQ is to save a person who is unlikely to 
be given landed immigrant status the trouble 
of applying and to save the application fee. 
It also cuts down the processing work for 
Canadian immigration officials. The system 
works well - unless there is a major change 
in the occupational demand weighting while 
the PAQ is being processed. 

A recent Federal Court of Appeal ruling 
(December 1991 ) concerning an applicant 
from Hong Kong, Yee Chuen-choi, shows 
what may happen. In between Mr. Yee's 
PAQ being processed in October 1987 and 
his formal application being made in 
November, the weighting for his occupa- 
tion, business analyst, plummeted from ten 
points to one. When his formal application 
was processed, he received only 65 points, 
instead of the 74 he would have received a 
month before. This put him out of the run- 
ning for a visa. The Federal Court found 
that he should have been allowed to apply 
directly for a visa in October, instead of 
being put through the PAQ process First. 
The court found that potential applicants 
should be given enough information to 
decide for themselves which path to choose. 



Representatives from tertiary educational 
institutions in Hong Kong. 



4 UPDATE 



Pre-migration Programs in Hong Kong 



Emigration from Hong Kong to Canada 
has increased rapidly in the last decade. In 
human terms this figure represents a great 
deal of potential anxiety and trauma as peo- 
ple face the difficulty of adjusting from one 
culture to another. 

While there are several long-standing 
post-migration organizations in Canada to 
offer assistance to new immigrants from 
Hong Kong, until recently there have been 
no equivalent organizations in Hong Kong 
working to allay pre-migration anxieties. 
This has meant that prospective immigrants 
have had to rely on friends and relatives 
who had already emigrated, so-called 
"immigration specialists/consultants" (a 
term used by one of the unsuccessful candi- 
dates in the September Legco elections to 
describe himself), or commercially-run pub- 
lications such as the Chinese Canadian 
Magazine and immigration guides to obtain 
the information they required. However, 
within the last eighteen months the need for 
impartial, non-profit-motivated pre-migra- 
tion information has been recognized. In 
response, two programs have been estab- 
lished. 

The first of these is the "Meet with 
Success" seminar program, which provides 
general information "regarding the cultural 
differences between Canadian and Hong 
Kong people" through an evening seminar 
open to all those prospective migrants who 
have already obtained an immigrant visa. 
Set up in early 1990, "Meet with Success" 
is run by the Canadian Club of Hong Kong, 
which was established over forty years ago 
as a social and fund raising organization for 
Canadians living in the territory. The 
Canadian Club is an independent organiza- 
tion run entirely on its membership fees, 
private donations, and fund raising. 
However, it has close links with the 
Canadian Commission, and its Honourary 
President is John Higginbotham. the 
Commissioner for Canada in Hong Kong. 

"Meet with Success" has received finan- 
cial support from the Canadian government, 
provincial government offices in Hong 
Kong, and the Commission for Canada in 
Hong Kong, as well as from many corporate 
and private donors and other Canadian 
organizations in the territory. The latter 
include the Canadian Chamber of 



by Harriet Clompus 

Hum; Kti/ia 

Commerce, the Chinese-Canadian 
Association, and the Canadian University. 
Association (H.K.). With one full-time 
coordinator, Lyneita Swanson. the program 
consists of a seminar held one evening a 
week for new immigrants. This free seminar 
provides a unique service, there being no 
equivalent program offered by Canadian 
organizations elsewhere in the world or by 
non-Canadian organizations in Hong Kong. 

The program is actively supported by the 
Commission with details of seminars given 
at the time of visa issuance and the venue 
being inside the Commission. Howe\ er. 
Ms. Swanson stressed that "Meet with 
Success" is independent of the Commission 
and that attendance is voluntary and not a 
condition of visa issuance. Nevertheless, the 
attendance rate is extremely high, w ith an 
85-90% uptake, which reflects the consider- 
able and previously unmet demand for such 
a service. 

The format of the seminar is a 1 V2 nour 
video, introducing a Hong Kong immigrant 
couple as they go through typical Canadian 
activities - grocery shopping, "do it your- 
self home improvements, and sports activi- 
ties. It features two well known Cantonese 
actors, who are recent immigrants to 
Canada and are "playing themselves." The 
video is followed by a general talk about 
different aspects of Canadian life, given in 
conjunction w ith a very well produced and 
comprehensive information package. This 
covers many aspects of life in Canada and 
includes practical information ranging from 
education to car ownership to tips on social 
and communication skills. 

The audience then participates in an 
exercise to create a personal "checklist" of 
the issues they consider most important in 
the migration adjustment process. Finally, 
there is a question and answer session in 
which all kinds of queries are raised from 
educational matters, to taxes, to the bringing 
of ancestors' bones to Canada for burial. 
Occasionally guest speakers are invited to 
present a seminar. Previous guests include 
Mila Mulroney, the wife of the Canadian 
prime minister, and David Lam, the Lt. 
Governor of British Columbia. The seminar 
is held in Cantonese except when there is a 
non-Cantonese speaker, in which case an 
interpreter is provided. 



The second program was set up by 
International Social Sen ices (ISS) 111 
January 1991 and is funded by a private 
donation from the Marden Foundation 
(Hong Kong). It provides more individual- 
ly-tailored and long-term services and can 
be seen as complementary to the "Meet with 
Success" program. The latter will refer peo- 
ple to the ISS program if it cannot deal with 
enquiries within the seminar format. 

For a nominal fee, the ISS program 
offers a series of services for those consid- 
ering migration to North America and 
Australia and to those who have already 
obtained immigrant visas. The service 
employs one full-time social worker and 
one support staff member. Pre-migration 
coordinator, Ms. Wan Fong Tarn, said that 
the Canadian and Australian Commissions 
have both been helpful in supplying infor- 
mation for the program, but there has been 
little encouragement or interest from the 
American Consulate-General. 

Services consist of answering telephone 
enquiries and giving more in-depth group or 
individual counselling sessions. One of the 
main areas of concern is the impact of emi- 
gration on children and. particularly, its effect 
on their educational progress. There is a 
weekly "mutual aid group" for parents where 
they can discuss their anxieties. 
Approximately eight couples participate in 
each session, and some weeks there is a wait- 
ing list. Participants are encouraged to 
exchange addresses in Hong Kong and their 
destination country, and they are also referred 
to relevant post-migration organizations. 
Dependent on funding, there are plans for 
other services such as skills training classes. 

In early October the ISS pre-migration 
program hosted the 1 2th annual Chinese 
Immigrant Service of North America con- 
ference, the first time this week-long event 
has been held in Hong Kong. It emphasized 
the importance of exchanging information 
and ideas at both ends of the migration 
route. Agencies from Toronto. Vancouver. 
and Montreal represented Canada at the 
conference. Participants from North 
America spoke of the necessity for "a 
greater sensitisation of their governments 
for the needs of Chinese migrants." and 
stressed that migrants must prepare them- 

Pre-migration. cont'd page 6 



UPDATE 5 



Pre-migration, cont'd from page 5 

selves as much as possible before leaving 
Hong Kong. A one day open forum, arranged 
as part of the conference, was attended by 
over 250 prospective immigrants, indicating 
the high level of interest in the community for 
pre-migration programs. 

"Meet with Success" and the ISS Pre- 
Migration program represent a first step 
towards alleviating the anxiety inherent in the 
migration process. However, there is a 



widespread perception that this is a Canadian 
rather than a Hong Kong issue. Therefore, the 
ISS program, in particular, has had great dif- 
ficulty in attracting local funds. The annual 
Marden Foundation grant of HK$330,000 
will only continue until the end of 1992, after 
which alternative sources of funding must be 
found. So far approaches to numerous chari- 
table foundations and to the government have 
proved unsuccessful, and the continued exis- 
tence of the ISS program remains uncertain. 



Immigration Applications, HK CLPR 1989 

by Diana Lary 
Hong Kong 



Not all immigration applications are 
made by people in the country of last perma- 
nent residence (CLPR). Some people apply 
elsewhere, either because there is no 
Canadian mission in their own country or 
because they are refugees. For others it is for 
reasons of convenience. Given how long pro- 
cessing delays can be in Hong Kong and how 
many potential Hong Kong immigrants trav- 
el, a significant number of Hong Kong CLPR 
applications are made at posts other than 
Hong Kong. The great majority of non-Hong 
Kong applications are made in the USA, 
many at border cities such as Seattle, Buffalo 
and Detroit. There is some indication that 
making an application outside Hong Kong is 
becoming more popular. Though the overall 
number of applications fell between 1989 
and 1990, the proportion of applications 
made outside Hong Kong increased. 





1989 


1990 


Hong Kong 
Seattle 


15930(91%) 
315 


12912(86%) 
197 


New York 


294 


167 


Buffalo 


275 


394 


San Francisco 


184 


192 


Detroit 


79 


149 


Singapore 
Boston 


76 
71 


184 
111 


Los Angeles 
Dallas 


68 

47 


106 
139 


Tokyo 

Minneapolis 

Atlanta 


31 
19 
18 


32 
67 
60 


London 


11 


80 


Sydney 
Bangkok 


8 
6 


25 
60 


Mexico City 
Other 


5 
65 


87 
106 


(Non Hong Kong) 1570 (9%) 


2156(14%) 


Total 


17500 


15068 


6 UPDATE 







Visas issued, Hong Kong CLPR 

The proportion of visas issued for people 
whose CLPR was Hong Kong, but who 
applied at other posts, ran at 6% in 1989 and 
9% in 1991. Care should be taken with 
these statistics. The two sets, for applica- 
tions and visas issued, do not correlate 
because of the time lag in processing, which 
varies both by the business of the post and 
by the class of application. Family and busi- 
ness class applications, for example, are 
normally processed before other classes. 
Visas issued in 1989 could be based on 
applications made in 1988 or earlier while 
1990 visas might be for 1989 applications. 
However, there may be some correlation 
between the 9% of non-Hong Kong applica- 
tions in 1989 and the 9% of visas issued at 
posts other than Hong Kong in 1990. 



Hong Kong 
Other 

Total 



1989 1990 

8935(94%) 7972(91%) 
559 (6%) 748 (9%) 



9494 



8720 



Canada, Britain and the 
Hong Kong Problem 

Dr. Gerald Segal, research fellow at 
the Royal Institute of International 
Affairs, London and reader in 
International Relations at Bristol 
University, has written an article analyz- 
ing the complex relationship between 
Britain and Canada over Hong Kong 
issues. See "Canada, Britain and the 
Hong Kong Problem," The Round Table, 
July 1991. pp. 285-98. 



British Parliament 
and Citizenship for 
Hong Kong Indians 

by Rup Narayan Das 
New Delhi 

Hong Kong's ethnic South Asians, who 
hold British Dependent Territory Citizenship 
(BDTC) passports, have been lobbying since 
1985, both in Hong Kong and London, for 
full British citizenship rights, including right 
of abode in the United Kingdom. Leading 
this campaign are two of Hong Kong's 
prominent Indian businessmen. Hari Harilela 
and Kewalram Sital. president and chairman, 
respectively, of the Council of Hong Kong 
Indian Associations. 

During the citizenship debate. Harilela. 
Sital and other members of the Council flew 
to London on several occasions to give pre- 
sentations and meet with Ministers and 
Members of Parliament. Council representa- 
tives also canvassed support from the local 
press. Although the efforts of the leaders of 
the Indian community in Hong Kong have 
not produced the desired results of full 
British citizenship rights, they did succeed in 
gaining support from some Members of 
Parliament and the press. 

In 1985 members of both Houses of the 
British Parliament evinced keen interest in 
and recognized their moral obligation 
towards the ethnic minorities of Hong Kong, 
including the Indian population. In response 
to this pressure on the UK government from 
Parliament, Baroness Young, then Foreign 
Office Minister in the House of Lords, on 19 
February 1985 clearly committed the British 
government to undertake amendments 
regarding citizenship in line with prevailing 
views in Hong Kong and in both Houses. 

A year later. Lord Glenarthur, then 
Home Office Minister, conceded that every 
speaker in the House of Lords debate on 20 
January 1986 supported the minorities' 
wishes along with other recommendations. 
In the debate in the House of Commons on 
January 16, all but two of the 18 members 
who spoke on the nationality provisions of 
the Hong Kong Act also supported the rec- 
ommendations of Hong Kong's Legislative 
Council, which included the extension of 
full British citizenship rights to ethnic 
Indians holding BDTC passports. Members 
of the Commons, belonging to different par- 
ties, were highly critical of the govern- 
ment's refusal to recognize the just claims 



of the ethnic minorities for an effective citi- 
zenship. 

Given the size of the government's major- 
ity, the British Nationality Order-in-Council 
had smooth passage in the House. However. 
attempting to allay the anxiety of the ethnic 
minorities as expressed by some MPs. Mr. 
Waddington. then Minister of State of the 
Home office, indicated that any British 
nationals forced to leave Hong Kong and hav- 
ing nowhere to go would be considered sym- 
pathetically by the government for entry to 
Britain, given their particular circumstances. 

In response to overwhelming concern 
expressed by MPs in the debate on 1 6 May 
1986. Lord Glenarthur reiterated that. "We 
should consider it an obligation for any 
future government to treat with very consid- 
erable and particular sympathy the case for 
admission to the UK of any individual 
British national under pressure to leave Hong 
Kong." His statement was the first time the 
word "obligation" in the context of the 
nationality issue was used by any govern- 
ment minister, and raised cautious optimism 
amongst leaders of the Indian community of 
Hong Kong. 

The Foreign Affairs Committee of the 
House of Commons, which visited Hong 
Kong in April 1989. submitted a report in 
June of that year which questioned whether 
these assurances given by the British govern- 
ment were sufficient. The report also recom- 
mended that the British government had an 
obligation to extend UK citizenship to "this 
group of people which it has cooperated in 
consigning them otherwise to a second class 
citizenship." 

Passed on 19 April 1990, the nationality 
package [see Update, Spring 1990: 12; Fall 
1990: 5], offering full British citizenship to 
50.000 families of BDTC passport holders of 
Hong Kong, came as an anticlimax to the 
Indian community after its protracted lobby- 
ing in the territory and in London. 



The debate in Parliament for the Bill 
evoked considerable sympathy for the BDTC 
passport holders who could be stateless after 
1997. Among Tory MPs. Peter Shore. Nigel 
Forman, and Andrew Faulds had advocated 
either restoration of full British citizenship 
rights or stronger guarantees for the future of 
the non-ethnic Chinese communities in Hong 
Kong. However, right wing Conservative 
MP Norman Tebbit led the Tory revolt 
against the Bill, arguing that, "we have more 
than enough to do to integrate existing 
[immigrant] communities into British societ) 
without adding to that burden or exacerbating 
existing problems." At the same time, he 
expressed concern about the fate of Asians of 
Indian descent who were likely to become 
stateless and possibly refugees, and advocat- 
ed intervention by the UK Foreign Secretary 
on their behalf with the Government of India. 

While Labour also criticized the Bill, the 
Party, represented by Roy Hattersley, Gerald 
Kaufman and Max Madden, strongly argued 
in favour of full British citizenship for ethnic 
Indians and other vulnerable groups in Hong 
Kong. Paddy Ashdown of the Liberal 
Democrat Partv sousht to strenathen and 



improve the Bill in Committee and pleaded 
for the needs of the ethnic communities. 

In response to such pleas by the opposi- 
tion. Home Secretary Waddington reiterated 
the government's position that if an individu- 
al from the ethnic minorities were to come 
under severe pressure after 1997. the govern 
iiient would consider his/her application to 
come to the United Kingdom. 

The Nationality Bill, which obtained 
royal assent in July 1990. shattered the last 
hope of Hong Kong Indians for full British 
citizenship rights. However, in a recent 
development concerning the plight of over- 
seas Indians such as in Hong Kong, the 
Government of India is now considering the 
possibility of amending the Constitution to 
provide dual citizenship to people of Indian 
origin abroad. This augurs well for ethnic 
Indians in Hong Kong who hold BDTC pass- 
ports. New Delhi is expected to announce its 
decision very soon. Although many Hong 
Kong South Asians may not prefer to return 
to India, at least they need not face stateless- 
ness in the worst of circumstances. 




Manchester. UK Chinatown 



Saskatchewan 
Government Office 

In November, the trade minister of the 
newly elected NDP government, Dwain 
Lingenfelter, announced that Saskatchewan 
would close the three trade offices it main- 
tains abroad in Hong Kong, Minneapolis 
and Zurich. The office in London is to 



remain open. The new government believes 
that the offices to be closed cost more than 
they are worth in terms of business done, 
especially the one in Hong Kong. The 
Saskatchewan representative in Hong Kong. 
Graham Taylor, is a former cabinet minister 
in the Conservative government; it was 
claimed that his living costs in Hong Kong 
were exorbitant. 

According to Robert Perrin, Executive 



Director of the International Division. 
Saskatchewan Economic Diversification 
and Trade Office, "The decision to close 
Saskatchewan's international office in Hong 
Kong was taken as part of a re-evaluation of 
the Province's overall approach to interna- 
tional trade and the severe budgetary deficit 
situation of the province. The government is 
looking for more rational and cost effective 
ways to encourage trade." 



UPDATE 7 



Beijing Update 

by Jane Greaves 
Beijing 



Continuing the recent trend in the 
Chinese press, there has been little mention 
of "things Hong Kong" during the winter 
months. In the few articles that have 
appeared, the concern of the Chinese gov- 
ernment over maintaining stability in Hong 
Kong (and presumably the mainland) is 
apparent, no doubt a reaction to the events 
in the "Soviet Union" last August. This sta- 
bility, suggested Chen Ziying, Deputy 
Director of the Hong Kong and Macao 
Affairs Office of the State Council, can be 
enhanced in two ways: through greater 
cooperation between China and the United 
Kingdom in affairs concerning Hong Kong 
and through greater interaction and more 
channels of communication between the 
mainland and Hong Kong itself. 
Cooperation and involvement are the key 
words in the press at the moment. 

The signing in September 1991 of the 
Memorandum of Understanding 
Concerning the Construction of the New 
Hong Kong Airport is referred to several 
times as a turning point in cooperation 



between the United Kingdom and China as 
it provides certainty for the projects and 
"also provides a practical framework within 
which various issues related to the develop- 
ment of the new airport can be discussed by 
parties concerned." The cooperation is reas- 
suring not only for Beijing but also for 
British business circles. A China Daily arti- 
cle reported that a recent delegation of 
British business people to Hong Kong saw 
increasing confidence in the territory, espe- 
cially as the future sourcing, financial and 
distribution headquarters for Asia. 

The active participation of Hong Kong 
in mainland affairs was by far the dominant 
issue in the news. Articles covered the 
Chinese space exhibition in Hong Kong, to 
which reccrd breaking crowds of overseas 
Chinese and Hong Kong residents flocked; 
Hong Kong investment in the mainland 
stock market; ihe Hong Kong Trade 
Development Council's major product pro- 
motion in Tianjin; and the reprinting in a 
Hong Kong magazine of a speech given by 
Li Peng on Shenzhen's development and 



the potential for overseas and Hong Kong 
participation in it. The inference being 
given is that Hong Kong is eagerly antici- 
pating its return to the motherland and is 
demonstrating this through its willing par- 
ticipation in mainland affairs. 

Bidding on the Hong Kong airport con- 
tracts did actually appear in both the 
English and Chinese press. This was sur- 
prising as reference to PADS is usually 
made under euphemisms such as "major 
construction projects" or "infrastructure 
development." One assumes that the 
Memorandum of Understanding has less- 
ened, though not eliminated, Beijing's dis- 
pleasure and, hence, PADS's taboo status in 
the press. That China is also bidding for 
contracts is significant. 

The general impression one gets from 
the mainland press continues to be that the 
Hong Kong issue does not merit much 
space in the press, but what coverage it does 
get should show the happy situation in the 
countdown to 1997. 



The Political Implications of Lu Ping's Visit in Hong Kong 

by Shum Kwok-cheung 

Hong Kong 



Lu Ping, director of the China's Hong 
Kong and Macao Affairs Office (HKMAO) 
of the State Council, recently visited Hong 
Kong on January 6-14. His visit was partly in 
response to the agreement reached by China 
and Britain in the Memorandum of 
Understanding on the airport issue, which 
stipulated regular meetings between the 
Director of HKMAO and the Governor of 
Hong Kong. This trip is particularly notewor- 
thy because Lu Ping is the most senior 
Chinese official to visit Hong Kong since the 
dispute over the Final Court of Appeal and 
the establishment of the standing committees 
in the Legislative Council (Legco). 

Although Lu Ping had official contacts 
with the Governor, Sir David Wilson, the 
real significance of his trip lay in the eight- 
day extension of his "informal visit" in order 
to approach various local communities. 
These included pro-China groups, commer- 
cial associations and political organizations. 



These more informal contacts drew much 
public attention. 

His contact with many local political 
organizations, including two minor liberal 
groups. Meeting Point and the Association 
for Democracy and People's Livelihood, was 
particularly important. However, Lu Ping 
excluded the most popular and powerful lib- 
eral party, the United Democrats, and its 
prominent chairman, Martin Lee Chu-ming. 
In an open letter in the South China Morning 
Post, Martin Lee demanded to speak with Lu 
Ping and stressed that the HKMAO director 
"regard the people of Hong Kong as an asset, 
not as an enemy; work with us, not against 
us" [SCMP, 12 January 1992, p. 1 1 ]. In refus- 
ing to meet with Mr. Lee, Lu Ping stated, 
"We have to make a selection. Some people 
want to overthrow the Chinese Government 
- of course we will not see those people. We 
do not have a common language" [SCMP, 1 1 
January 1992, p.3]. 



The relationship between China and local 
Hong Kong liberals has worsened since the 4 
June 1989 Tiananmen massacre. At that time 
liberal leaders formed the Hong Kong 
Alliance in Support of the Patriotic and 
Democratic Movement in China 
(HKAPDM) to support democracy in 
Mainland China. This organization was 
declared subversive by Beijing. To contest 
the first direct elections to Legco last 
September 1991. leaders of the majority of 
liberal groups formed a political party, the 
United Democrats of Hong Kong (UDHK). 
in April 1990. Liberals won an overwhelm- 
ing victory in the Legco elections, attaining 
16 (later 17 after a by-election held in 
December) of the 1 8 contested seats. Twelve 
of these seats were won by UDHK candi- 
dates. This rapid expansion of liberal power, 
especially by the United Democrats, 
increased China's suspicion. As evidenced 
by Lu Ping's visit, China's tactic has not 



8 UPDATE 



been to condemn the whole liberal camp but 
to isolate those leaders active in the alliance 
for democracy movement, the HKAPDM 
and the United Democrats 

China's strategy of divide and rule - in 
t Ihinese terms, the "united front" - led to 
much criticism as reflected in editorials of 
the Hong Kong press. |See H.K. Economic 
Times. 10 January 1992; Hong Kong 
Economic Journal. 1 1 January 1992. and the 
South China Morning Post. 13 January 
1992.) As one editorial proclaimed. "The 
guest list to Mr. Lu's functions over the past 
week reads like a political register of who is 
in, who is out. who has a future and who has 
none" [SCMP, 13 January 1992, p. 16]. 

Commenting on the implications of Lu 
Ping's visit. Dr. Louie Kin-sheun. Research 
Officer of the HK Institute of Asia-Pacific 
Studies at the Chinese University of Hong 
Kong, felt that China had successfully reinte- 
grated and reorganized local political forces 
sympathetic to Beijing. For instance, after the 
meeting with Lu Ping, the Cooperative 
Research Centre, formed by the majority of 



conservative Legco members and headed by 
senior legislator. Allen Lee Peng-fei, claimed 
they wca- recognized as a political entity even 

though the group had not yet functioned as a 
political party [SCMP, 13 January 1992]. Lu 
Ping's invitations also were an indication of 
acceptable candidates for Hong Kong's future 
ruling class. According to Dr. Louie. China's 
tactic of divide and rule, both powerful and 
delicate, had a negative impact on the United 
Democrats who were excluded from meetings 
with Lu Ping. At his encounter with two 
minor liberal groups. Lu Ping reiterated that 
China was not against the United Democrats 
as a whole but only opposed to some members 
of the "liberal flagship" because they wanted 
to overthrow the mainland government. 

What China is attempting to do is isolate 
political leaders active in both the UDHK and 
the HKAPDM. As 1997 approaches, the 
"China factor" w ill become more and more 
important. By undermining the solidarity of 
the liberal camp, China apparently intends to 
weaken its political power. Chinese leaders 
like Lu Ping stress the fact that the Hong 



Kong electorate should consider if the opposi- 
tion to Chinese authority will be beneficial to 
the territory. The political group which is not 
recognized by China will inevitably face 
much pressure from within and outside the 
camp of Hong Kong liberals. 

Undoubted!) . China has become an 
important factor in the Hong Kong political 
arena, and its influence will increase as 1997 
approaches. However, the liberal camp is still 
the strongest political force with a broad pop- 
ular base in Hong Kong and cannot be easily 
dismissed. In the years to come. China will 
need to rethink its antagonistic and diehard 
attitude towards the liberals, while the latter 
will have to try to develop more flexible tac- 
tics to deal with the Beijing government. It is 
significant that Lu Ping met with some liberal 
leaders last January. Nevertheless, if there is 
to be a smooth transfer of power after 1997, a 
crucial consideration will be the improvement 
of relations between local liberals and 
Chinese authorities in both the pre- and post- 
transition period. 



Canadian MPs and 
Chinese Human Rights 

The expulsion of three Canadian MPs 
from Peking on January 7 aroused consider- 
able interest and excitement in Hong Kong. 
The three. Beryl Gaffney. L. Nepean. Svend 
Robinson. NDP. Bumaby-Kingsway and 
Geoff Scott, PC. Hamilton-Wentworth, 
were greeted with bouquets and major press 
coverage when they arrived in Hong Kong 
on a flight from Peking. They had been 
taken to the Capital Airport in Peking, with- 
out prior arrangement and against their will, 
from a meeting at the Great Hall of the 
People with Rong Yiren. vice chairman of 
the National Peoples' Conference and a 
leading figure in China's foreign trade 
establishment. 

The MPs were in China as the guests of 
the People's Institute of Foreign Affairs, a 
unit connected to the Ministry of Foreign 
Affairs. Their explicit intention was to look 
into the human rights situation in China. 
Chinese authorities became upset when the 
MPs met relatives of imprisoned dissidents 
and were concerned about the MPs inten- 
tion to hold a press conference in Peking. 
Because of the expulsion the press coverage 
came from Hong Kong rather than Peking. 



The incident aroused a great deal of interest 
both internationally and in the territory 
where human rights issues in China are very 
close to the bone. 

The expulsion of the MPs came a week 
after the release from prison in China of 
Hong Kong resident. Lau Shan-ching (Liu 
Shanqing) who had served ten years in 
prison in China for giving financial help to 
members of the Li-Yi-Zhe group of dissi- 
dents. There was much comment in Hong 
Kong on the relative advantages of being 
Canadian. 



Hong Kong's Future 
Court of Appeal 

In view of the transfer of sovereignty 
from Britain to China. Hong Kong will no 
longer be able to use the Privy Council in 
London as its final court of appeal. Both the 
Joint Declaration and Basic Law describe 
the setting up of a court of appeal in Hong 
Kong, and allow for an unspecified number 
of judges from other common law jurisdic- 
tions amongst the five judges. Previous 
expectations were that there would be two 



such judges, but a September Joint Liaison 
Group decision between Britain and China 
proposed to limit foreign judges to one. On 
December 4th, by a majority vote of 34 to 
11, Legco asked Britain and China to recon- 
sider that decision and to leave the number 
of foreign judges open. The request was 
rejected by the Chinese and British govern- 
ments and by the Hong Kong government. 
However, the fact that it was made at all 
was seen as a sign of a new Legco activism 
and as a manifestation of lack of confidence 
in Chinese attitudes towards the rule of law. 

The issue aroused considerable interest 
in Hong Kong and abroad because it con- 
cerns the independence of the future court 
and the continuation of a common law 
regime after 1997. For many Hong Kong 
Chinese, and for many people doing busi- 
ness there, this is seen as a fundamental 
issue. Legco is the only partially elected 
body in Hong Kong. Thus, its present and 
future role in making its views on Hong 
Kong's legal future strongly felt is being 
watched with great interest. For Canada the 
issue is noteworthy because of the likeli- 
hood that, as a major common law jurisdic- 
tion, Canadian judges will be asked to serve 
on the Hong Kong court. 



UPDATE 9 



Premier Harcourt Emphasizes BC-Hong Kong Relationship 



Shortly after his election, the new pre- 
mier of British Columbia, Mike Harcourt, 
visited Asia in order to underscore the 
importance his province attaches to the 
region. His stay in Hong Kong at the end of 
November was an important part of his 
visit. The following is an address Premier 
Harcourt gave at the Government of British 
Columbia reception for the trade and invest- 
ment community. November 21, 1991. 

"I am very pleased to be back in Hong 
Kong. I visited here during my years as 
mayor of Vancouver, and I know of the 
important and special relationship that the 
province of British Columbia has with the 
people of Hong Kong. 

As British Columbia's new premier, I 
am committed to strengthening and expand- 
ing BC"s ties with Hong Kong. I would like 
to tell you a little bit about the province of 
British Columbia - our people, our econo- 
my and about our long friendship and rela- 
tionship with the people of Hong Kong.... 

The province of British Columbia has 
stunning natural beauty, a clean environ- 
ment and first-class educational facilities, 
hospitals and social services. We have a 
thriving, dynamic, diverse and growing 
economy - an economy that, like Hong 
Kong, is closely tied to the international 
market place. 

British Columbia is a trading province 
that each year exports billions of dollars 
worth of products. In 1990. for example, 
British Columbia's exports were valued at 
over $16.5 billion. 

As the westernmost province in Canada, 
British Columbia is Canada's gateway to 



the markets of the North and South Pacific 
and the United States. In fact, from British 
Columbia, it is possible to do business with 
Asia, North America and Europe on the 
same day. 

We have strong ties with the Pacific Rim 
countries, and we are a central point for 
Asian goods entering North America. One 
of our key trading partners in the Pacific 
Rim is Hong Kong. 

In 1989, for example, British Columbia's 
trade with Hong Kong was in excess of 
$280 million. British Columbia's links with 
Hong Kong are significant and span many 
decades. Our people have a close relation- 
ship with the people of Hong Kong, and 
there is a strong Hong Kong presence in 
British Columbia. 

For example, many Hong Kong students 
choose to pursue their education in British 
Columbia. In 1990, there were over 2,400 
students from Hong Kong studying in our 
province, and British Columbia is becoming 
the new home for thousands of Hong Kong 
residents. In 1990 alone, over 6,700 Hong 
Kong residents who received immigrant 
visas chose to come to British Columbia. As 
more Hong Kong immigrants come to BC, 
the ties between Hong Kong and our 
province are becoming family ties. 

Our trade, investment and business links 
are also growing. There are many Hong 
Kong investors who have invested in British 
Columbia industries, ranging from garment 
factories to light consumer goods production. 

The head office of the Hongkong Bank 
of Canada, Canada's largest foreign-owned 
bank, is located in Vancouver. The regional 



offices of Cathay Pacific Airways are locat- 
ed in Vancouver, which as you know, is the 
centre for trade and commerce in British 
Columbia. 

As well, major trading, shipping and dis- 
tribution companies like Jardines and Dah 
Chong Hong have a presence in British 
Columbia. Many Hong Kong business peo- 
ple have made prudent investments in the 
province, including manufacturing plants 
established by the Video Technology Group 
and Qualidux Ltd. They recognize that 
British Columbia is a competitive location 
where their new capital investment is 
always welcome and supported. 

As British Columbia's new premier. I 
encourage you to join the growing list of 
Hong Kong businesses and corporations 
who are finding that investing in British 
Columbia is a wise business decision. 

The people of Hong Kong are well 
known for their entrepreneurial talents and 
business know-how. As British 
Columbians, we are eager to learn from 
you. That's why, while mayor of 
Vancouver, I worked hard to promote trade, 
investment and cultural links with the peo- 
ple of Hong Kong. 

And now as premier of British 
Columbia. I look forward to building upon 
those efforts so that the people of British 
Columbia and the people of Hong Kong can 
enjoy even closer ties.... 

May both British Columbia and Hong 
Kong continue to enjoy friendship, business 
partnerships, prosperity and success." 



Crosbie Visit to Hong Kong 



On January 12-14. John Crosbie, Minister 
for Fisheries and Oceans, visited Hong 
Kong. The minister led a delegation of fish 
merchants from Canada and hosted a seminar 
on underutilized species for local buyers. 

In a speech to the Canadian Chamber of 
Commerce in Hong Kong, the Minister 
reviewed the current state of the Canadian 
economy, prospects for constitutional settle- 
ment and opportunities for investment in 



Atlantic Canada and the fisheries. He 
emphasized that exports of seafood from 
Canada to Hong Kong had risen from 
Cnd$6.3 million (HK$38 million) in 1986 
to Cnd$14.6 million in 1990. Also Minister 
for the Atlantic Canada Opportunities 
Agency, Mr. Crosbie stressed that Hong 
Kong was limited in its investment vision of 
Canada, looking to the Pacific west while 
ignoring Atlantic Canada. 



During his visit, the Minister also attend- 
ed a luncheon with prominent journalists 
from the Hong Kong media, including resi- 
dent Canadians Ben Tierney (Southam 
News), Susan Helwig (CBC), Don Pittis 
(Standard Broadcast), and Kelly 
McPharland (Toronto Sun/Financial Post). 



10 UPDATE 



Canadian Organizations in Hong Kong 



by Harriet Clompus 
Hong Kong 



Hong Kong-Canada Business 
Association (HKCBA) 

Founded in Calgary in 1984. the 
HKCBA was established by Canadian busi- 
ness people to promote bilateral trade. It 
now has a total membership of 3,400 indi- 
viduals and corporations and maintains 
offices in all Canadian provinces. 

Early in 1991 John Cheng, a Chinese 
Canadian and former executive director of 
the HKCBA who returned to work for the 
Hong Kong government, became the volun- 
tary HKCBA representative in the territory. 
However, operations in Hong Kong are still 
at a very preliminary stage with no perma- 
nent office or near-future plans to recruit 
members locally. Instead Mr. Cheng acted 
as a liaison officer, working with Canadian 
members and Hong Kong contacts and 
agencies. There are also close links between 
the Canadian Chamber of Commerce in 
Hong Kong and the Hong Kong Trade 
Development Council, but John Cheng 
emphasized the fact that because the 
HKCBA is a Canada-based organization 
and the other two are based in Hong Kong, 
there is no duplication of their w ork. 

In 1991 the HKCBA sent a delegation to 
Hong Kong to participate in Festival 
Canada '91, and for the first time since its 
inception, the organization held its annual 
general meeting there. Prof. Diana Lary, 
director of the Canada and Hong Kong 
Project, was invited as a guest speaker to 
talk about the research project. The 
HKCBA will take a leading role in the 
reciprocal Festival Hong Kong '92 to be 
held in Canada next fall. Andrea Eng. for- 
mer national president of the HKCBA. will 
serve as Co-Chair of the Festival 
Committee. 

Note: The editors recently learned and 
regret to report that Mr. Cheng died sud- 
denly of a heart attack in February; his 
untimely death is a great loss to his family. 
friends and colleagues, and we extend our 
sincere sympathy. As a new representative 
has yet to he appointed, we do not have a 
contact number in Hong Kong for the 
HKCBA. 



Chinese Canadian Association in 
Hong Kong 

The Chinese Canadian Association was 
set up five years ago to promote links 
between Canada and Hong Kong, and in the 
words of its former Chair, Felix Fong, "to 
look after the interest and welfare of 
Chinese Canadians living in Hong Kong." 

A relatively small organization w ith only 
200 members, it has, nevertheless, been 
very active in many Canadian projects in 
Hong Kong in the past year. These include 
participation in Festival Canada '91, spon- 
sorship of a concert featuring Chinese 
Canadian musicians, and the hosting of a 
visit by a Canadian mountain climbing 
team. The association's main project was its 
leading role in the establishment of the 
Canadian International School, which 
opened on 15 November 1991. Seven of the 
twelve founding members of the school's 
Foundation are from the board of the CCA, 
and former Chair Felix Fong is the 
Canadian International School representa- 
tive on the Canada Club Executive 
Committee. The Association continues to be 
active in fund raising for the school and 
supports the Foundations 's intention to 
w ork tow ard the building of a new facility 
to further improve Canadian education in 
Hong Kong. 
Chair: Kwan Li 

c/o The Canadian International School 
GPO Box 946 
7 Eastern Hospital Road 
Caroline Hill 
Hong Kong 



The Canadian Club of Hong Kong 

Founded 42 years ago, the Canadian 
Club aims to "create a sense of fellowship 
among Canadians in Hong Kong." In addi- 
tion to social functions, it organizes many 
fund raising and charity events. Of the 
approximately 900 members. Nancy Dixon, 
Executive Director, estimates about 30% 
are Hong Kong-born Canadians, with the 
majority being expatriates. 

The Club organizes the "Meet with 
Success" pre-migration seminars [see Pre- 
Migration Programs in Hong Kong. p. 5). 
which provide information to new immi- 



grants from Hong Kong to Canada regard- 
ing cultural differences. The Club is a 
founding member of the Canadian 
International School and also participated m 
Festival Canada '91. It has gcxxl relations 
with the Chinese Canadian Association which 
has contributed to the "Meet with Success" 
program, and many Chinese Canadians are 
members of both organizations. 
President: Vincent M. Lee 
Exec. Director: Nancy Dixon 
GPO Box 1587 
Hong Kong 
Tel.Page: 1108-66244 (N.Dixon) 



The Canadian Chamber of 
Commerce in Hong Kong 

The CCCHK is an independent, non- 
profit organization with a mandate to foster 
bilateral trade and investment between 
Hong Kong and Canada. Since its inception 
in 1977. it has grown from a loose collec- 
tion of business people to an organization 
with over 900 corporate and individual 
members, making it the biggest Canadian 
chamber of commerce outside of Canada. 

The CCCHK holds up to 80 functions a 
year which include many seminars, as well 
as jointly sponsored events with other local 
chambers and associations. Its bimonthly 
publication. Canada Hong Kong Business. 
has a readership of over 10,000 in Hong 
Kong and Canada. The Chamber is also a 
founding member of the Canadian 
International School and has contributed to 
the Canada Club's "Meet with Success" 
Program. 

Exec. Director: Heather Allen 
13/F One Exchange Square 
GPO Box 1587 
Hong Kong 
Tel: 526-3207 
Fax: 845-1654 



UPDATE 11 



Goddess of Democracy Erected at UBC 



by Hugh Xiaobing Tan 
\ ancouver 



Those who watched TV coverage of the 
1989 June 4th incident in Beijing will 
remember the destruction of the statue of 
the Goddess of Democracy after the 
People's Liberation Army captured 
Tiananmen Square. Exactly two years later, 
a replica of the statue was erected on the 
campus of the University of British 
Columbia in Vancouver to commemorate 
the 1989 massacre. 

The idea of recreating the statue was ini- 
tiated by the Vancouver Society in Support 
of Democratic Movement (VSSDM), an 
organization founded shortly after the 
Beijing incident. To raise funds for building 
the statue, the VSSDM organized a Concert 
for Democracy in China on 4 August 1989. 
and about $20,000 was collected. At that 
time, the VSSDM proposed that the statue 
be built at the Dr. Sun Yat-sen Garden in 
Vancouver's Chinatown. However, this pro- 
posal was refused by the board of the 
Garden, which was reluctant to become part 
of "a political forum." In March 1990 
VSSDM applied to the Vancouver Parks 
Board for the placement of a plaque in the 
city-run Sun Yat-sen Park, adjacent to the 
Garden. This application was also turned 
down because of strong opposition from 
within the local Chinese community. [See 
Update, Spring 1990, p. 9.] The VSSDM 
began to look for other sites. A small statue 
of the Goddess was later built in the Forest 




Lawn Cemetery in Burnaby. B.C.. but this 
did not attract much public attention. 

The proposal for placing the statue at the 
UBC site was first put forward by the 
Chinese Student and Scholar Association 
(CSS A) of UBC. In February 1990 Chair of 
the Association. Dongqing Wei, was invited 
to give a presentation at the Alma Mater 
Society (AMS), of which the CSSA is a 
member organization. A motion was passed 
by the AMS to build the statue, and a mem- 
orandum was given to the president of the 
university, proposing a site near the Asian 
Centre. UBC authorities agreed to allow the 
statue to be placed at the university but 
decided on a site close to the Student Union 
Building. The President's Art Advisory 
Committee also examined details of the 
plans for the statue from an artistic perspec- 
tive. Final approval for the project was 
granted in May 1991. 

It is rumoured that during the negotia- 
tions between AMS and university authori- 
ties, the Chinese Consulate General in 
Vancouver contacted UBC in an attempt to 
prevent the proposal from being approved. 
However, the university considered this 
matter mainly a student affair and refused to 
intervene. After approval was granted, 
Vancouver artists Tom Mash and Chung 
Hung began construction of the Goddess 
statue. Their final product was a three-meter 
high, 800 pound statue made of a resin and 
marble dust composite. The actual cost of 
the sculpture was $25,000. $20,000 of 
which came from the VSSDM and the rest 
from CSSA. The Alma Mater Society paid 
$ 1 2.000 for preparation of the site. This 
statue is said to be the largest, permanent 
outdoor replica of the Goddess of 
Democracy in the world. 

The unveiling ceremony took place on 
Sunday, 2 June 1991. in commemoration of 
the second anniversary of the Tiananmen mas- 
sacre. Over 500 people attended the dedica- 
tion in the plaza of the Student Union 
Building, and participants paid tribute to those 
who died in Beijing. The plaque beneath the 
statue briefly describes, in both English and 
Chinese, the democratic movement in China 
during the spring-summer of 1989. 



Speakers at the ceremony included rep- 
resentatives of the three major organizations 
responsible for construction of the statue 
and other local political figures. Senator Pat 
Carney told the audience that she had 
received calls from the Chinese Consulate 
General asking her not to attend the ceremo- 
ny. She added. "Anyone who knows me 
knows the more pressure on me not to do 
something, the more likely I will show up." 
Vancouver-Point Grey MLA. Dr. Tom 
Perry of the New Democratic Party also 
mentioned that the Consulate General had 
pressured him not to attend the unveiling. 
MP Svend Robinson (NDP. Burnaby- 
Kingsway), who was later expelled from 
China this past January 7 [see Canadian 
MPs and Chinese Human Rights, p. 9], 
and MLA Grace McCarthy (Social Credit. 
Vancouver-Little Mountain) also paid trib- 
ute at the ceremony. A letter was read from 
then Premier Rita Johnston. At the end of 
the gathering, participants sang "We Shall 
Overcome," substituting the words "China 
will be free some day." The event was cov- 
ered by major local Chinese and English 
newspapers and TV stations. 

The response from Chinese authorities 
was indirect but strong. The sister-universi- 
ty relationship between UBC and 
Zhongshan University in southern China 
was discontinued by China, apparently as an 
act of protest. 




12 UPDATE 



West's Democracy Push in Best Interests of All 



by Danny Gittings 
Hong Kong 



It comes as a salutary reminder of how 
patchy Britain's record is in defending 
Hongkong people's interests to find other 
major Western democracies are beginning to 
take a keen interest in the territory's internal 
affairs and, on occasion, publicly voice their 
fears while London remains mute. 

It is a trend that is most advanced in 
Canada, but which some analysts belies e 
also shows signs of emerging within the US 
and Australian Governments, and which 
became unmistakably apparent in the wake 
of the recent Legislative Council elections. 

Then, British - and Hongkong - 
Government officials sat on their hands and 
refused to pronounce the polls a success, let 
alone endorse the idea of trying to increase 
the number of directly-elected seats available 
in 1995. 

Canada, however, had no such reserva- 
tions. Not only did Ottawa endorse the elec- 
tions as a success, but she also went as close 
as she could to calling for a speeding up of 
the democratisation process. 

"It is clear that the people of Hongkong 
are ready to exercise more control over their 
own affairs," External Affairs Minister Ms 
Barbara McDougall said in a statement. 

"This is an important first step in increas- 
ing the pace of democratisation in 
Hongkong," she said in a tone markedly at 
odds with the tenor of the comments then 
emanating from both the Foreign Office and 
Lower Albert Road. 

When asked why they troubled to issue 
such a statement, even normally talkative 
Canadian diplomats equivocate. 

What they are reluctant to say. even pri- 
vately, is what - reading between the lines - 
is one of the main motives behind the move, 
a feeling Britain can no longer be relied upon 
to secure the territory's stability and protect 
its people's interests. 

If London was doing its job properly 
there would be little need for other govern- 
ments to make pointed comments about 
issues such as the election. 

There would be no need either for senior 
figures in the US and Australian govern- 
ments to voice their concerns about the terri- 
tory's future. 



There are persistent reports Lower Albert 
Road unsuccessfully tried to tone down US 
Consul-General Mr. Richard Williams' 
speech last May, in which he called for the 
settling of differences between Hongkong 
and Beijing, and came much closer to inter- 
fering - as the Chinese would put it - in the 
territory's internal affairs than is the US 
habit. 

And while no one seems to have tried to 
tone down Australian Foreign Minister 
Senator Gareth Evans' remarks when he 
passed through the territory earlier this year, 
he too sailed closer to the wind than is diplo- 
matically customary with a warning political 
events on the mainland might harm interna- 
tional confidence in Hongkong. 

The Foreign Office - determined to show 
the world it can hand a stable Hongkong over 
to Chinese rule - is less than enthusiastic 
about such comments. 

But far-sighted officials recognise the 
benefits internationalising the territory's 
problems can bring, and in particular the 
pressure it exerts on both Britain and China 
to improve Hongkong's lot. 

And it is in this that Canada is streets 
ahead of the other Western democracies. Not 
only has Ottawa already taken up the issue of 
faster democratic reform directly with 
Beijing, but officials also revealed last week 
they would be prepared to do the same over 
the composition of the Court of Final Appeal. 

While some in the Canadian Government 
might like to put this keen interest in the ter- 
ritory's internal affairs down to a sense of 
altruism, there are solid self-interests under- 
lining it. 

The first is the 40,000 Canadian nationals 
now living in the territory. Many - if not 
most - are Hongkong-bom Chinese whose 
foreign passports, on a strict interpretation of 
China's nationality law, need not necessarily 
be recognised by Beijing, thus giving Ottawa 
a very real stake in trying to ensure nothing 
happens after 1997 that might put this to 
the test. 

Then there is the question of the huge 
number of Hongkongers who now have rela- 
tives on the other side of the Pacific. 

Community leaders in Toronto, which has 
the largest ethnic Chinese population outside 



Asia. believe there are more than a million 
people in the territory who have relations in 
the city. And Canadian officials privatel) 
admit that in the event of Sir David Wilson's 
so called "Armageddon Scenario" they 
would be hard pushed to turn them assay. 

Finally there is also the not insignificant 
fact the health of both the US and Canada's 
economies is increasingly dependent on con- 
tinuing Asian investment, much of it from 
the territory. 

No one knows how much Hongkong 
money has flowed into Canada in recent 
years, although well-informed observers 
believe the popular emigration destination of 
Vancouver soaked up C$2 billion (HK.S13.8 
billion) alone last year. 

And some local officials freely admit 
their provinces would be in deep trouble if 
this flow of money stopped. "We need your 
investments if our people are to continue to 
have the standard of living they expect in the 
decades to come." said an official in Alberta, 
now Canada's third most popular destination 
for Hongkong emigrants. 

So Canada- and perhaps also Australia 
and the US - has real concerns pushing them 
towards taking a closer interest in promoting 
Hongkong's autonomy. 

But that does not lessen the value of their 
involvement. China may hate it, perhaps 
Britain too, but if powerful Western democ- 
racies pressure these two governments to pay 
more attention to the interests of the territo- 
ry's population then they will have done 
Hongkong a lasting favour. 

The editors have received permission to 
reprint this article which appeared in the 
South China Morning Post. 3 November 
1991. Mr. Gittings' s trip to Canada on 2b 
October-4 November 1991 was sponsored by 
the Department of External Affairs and 
International Trade Canada. One of four 
journalists from APEC (Asia Pacific 
Economic Cooperation forum) countries 
invited to Canada, he visited several cities. 
including Vancouver, Edmonton. Toronto, 
Ottawa. Montreal and Quebec City, and 
inteniewed Canadian business people, aca- 
demics, politicians, and government officials 
involved in Asia Pacific affairs. 



UPDATE 13 



Commissioner Higginbotham Participates in 
"Greater China Day" Seminars 



During his trip to Canada at the end of 
January-early February, John 
Higginbotham, Commissioner to Hong 
Kong, visited both Vancouver and Toronto 
where he met with businessmen, academics 
and other interested professionals. In 
Vancouver on January 3 1 , he spoke to the 
Board of Trade on "Canada-Hong Kong 
Relations as 1997 Approaches." While in 
Toronto he participated in the "Greater 
China Day" seminars on February 7, orga- 
nized by the Joint Centre for Asia Pacific 
Studies. He was co-speaker at these events 
with M. Fred Bild, Canadian Ambassador 
to the PRC. and John Tennant, Director 
General of the Asia and Pacific North 
Bureau, Dept. of External Affairs. 

An early morning session, the Asia 
Pacific Update breakfast on Greater China, 
was attended by over 1 25 people, primarily 
from the business community. It was spon- 
sored by JCAPS, the Ontario Centre for 
International Business, the Asia Pacific 
Foundation of Canada and the World Trade 
Centre. At this meeting, Mr. Higginbotham 
expressed optimism for the strength of 
Hong Kong's economy and its continued 
development up to and after 1997, especial- 
ly with the agreement between the UK and 
China on the new airport and container port. 

He stressed the importance of Hong 
Kong as a key financial and entrepot centre 
- "the gateway to the Asia Pacific 
region. ..the principal hub for a rapidly 
growing trade between China and the coun- 
tries in the region and in the rest of the 
world." Not only is Hong Kong "the Asian 
headquarters for some of Canada's most 
innovative corporations," it also plays an 
increasingly "unique role as a source of 
human and financial capital for Canada." 

He reiterated that Canada and Hong 
Kong have developed important trading, 



financial and human ties over a long period 
of time. Because of such ties, Canada has a 
"major stake in Hong Kong's future" and 
also has an important role to play in ensur- 
ing that future. The commissioner pointed 
out that since the tragic events of 
Tiananmen Square, Canada has "adopted a 
policy to build confidence in Hong Kong," 
and fully supports the autonomy of the 
region as promised under the Sino-British 
Joint Declaration. Furthermore, our govern- 
ment upholds the shared, "fundamental val- 
ues and liberties which have contributed to 
Hong Kong's success [and] are essential to 
long-term stability and prosperity." 

The three speakers also met in the after- 
noon with China specialists at a roundtable 
held at University of Toronto, followed by a 
public seminar on "The Future of Canada's 
Relations with 'Greater China'." The latter 
was jointly sponsored by JCAPS and the 
Canadian Institute for International Affairs. 

Commissioner Higginbotham stressed 
the importance of Hong Kong in the phe- 
nomenal economic growth over the past 
decade in the Pearl River Delta of South 
China, "which is helping to integrate the 
two economies ahead of 1997." Many Hong 
Kong industrialists "have close links to 
Canada," and we should "not overlook the 
unique opportunities that our ties with Hong 
Kong offer." Through these links, the 
Commissioner emphasized. Canada can 
"become part of the economic miracle that 
is Hong Kong and its Asian hinterland." 

Greater China Day concluded with a 
dinner meeting with presidents and repre- 
sentatives of several Ontario universities to 
discuss future linkages between institutions 
of higher learning in Hong Kong and 
Ontario and. particularly, instruments for 
attracting high quality students from the ter- 
ritory to Ontario universities. 



Hong Kong Visa Students 
in Metro Toronto - a 
Research Project 

by Paul L.M.Lee 
Toronto 

The number of Hong Kong students opt- 
ing for overseas studies has steadily 
increased in recent years despite the effort 
made by the Hong Kong government to pro- 
vide additional primary and secondary 
school places, as well as to expand tertiary 
education (universities and colleges). The 
four countries most favoured by Hong Kong 
students for overseas studies are the United 
Kingdom, USA, Canada and Australia. 
From 1985-1990, the statistics for student 
visas issued by these four countries are as 
follows: 

Year UK ISA Canada Australia Total 

1985 4492 3505 2912 445 11354 

1986 4269 3509 2930 688 11396 

1987 4232 3679 3616 1877 13404 

1988 3856 4215 3808 3147 15206 

1989 4539 4855 5096 4678 19168 

1990 4349 5840 5681 5258 21128 

From the above table, it can be observed 
that the number of Hong Kong students 
going abroad for further studies has doubled 
from 1985 to 1990, and Canada has attract- 
ed more than a quarter of these in 1990. 
Generally a large proportion of visa students 
are going to the US to study at the tertiary 
level while increasingly large numbers of 
younger Hong Kong students are attending 
secondary schools in Canada and Australia. 
Those coming to Canada tend to concen- 
trate in Toronto and Vancouver although 
Edmonton and Calgary have become more 
popular. 

Visa students have brought their culture 
to these schools and, thus, enriched the cur- 
riculum and school life in their new envi- 
ronment. However, the acceptance of large 
numbers of visa students, in addition to the 
increasing enrolment of immigrant students 
from Hong Kong, has placed great strain on 
the available resources of the school boards 
and individual schools accepting these stu- 
dents. At the same time visa students have 
often experienced culture shock which can 
be especially difficult for the younger ones, 
many of whom have left their families to 
live on their own for the first time. Their 



14 UPDATE 



adjustments in the new environment can 
have a tremendous effect on their personal 
development, school performance, and the 
perception of Canada in their future career. 

An earlier study of visa students at 
Canadian universities was done by Kathryn 
Mickle in 1984-86. The present research on 
Hong Kong visa students focuses on both 
university and secondary institutions in the 
Metro Toronto area. Dr. Mickle will con- 
duct further research among visa students at 
York University while Paul Lee and 
Bernard Luk will focus on secondary 
schools pupils. 

The aim of the overall research project is 
to concentrate on the experience and expec- 
tations of Hong Kong visa students here and 
the efforts being made by school boards and 
universities to meet the challenge. The 
researchers hope to identify specific prob- 
lems of these students and ways to over- 



come difficulties during this transition peri- 
od and to propose possible improvements. 
The research on university students will 
document their experience and investigate 
factors which facilitate or hinder their 
adjustment. The study of Hong Kong visa 
Students in secondary schools will focus on 
the following points: 

1 ) the trend and spread of these students in 
Metro Toronto; 

2) the psychological, academic, social and 
financial problems faced by visa stu- 
dents; 

3) the provision of support by individual 
institutions, school boards, community 
service groups and other government and 
voluntary agencies; 

4) the difficulties encountered by school 
teachers, principals and related personnel 
in providing education and essential ser- 
vices; and 



5) identification of possible improvements 
in solving problems faced by visa stu 
dents, teachers, principals and the person- 
nel of school boards and other agencies. 

Questionnaires for university students 
have been sent to over 500 Hong Kong visa 
students at York University. With the coop- 
eration and assistance of public school 
boards and independent schools in Metro 
Toronto, questionnaires lor secondary 
schools have been administered to students 
in these schools. Results of this research 
w ill form the core of a workshop on visa 
students to be held next September in con- 
junction with Festival Hong Kong '92. 
Papers will be published by the Canada and 
Hong Kong Project. 



Quebec-Hong Kong Colloque 



Le premier colloque. les relations entre 
le Quebec et Hong Kong: enjeux, 
contraintes et perspectives de developpe- 
ment. a eu lieu le 8 Janvier a l'universite du 
Quebec a Montreal. II a ete organise con- 
jointement par le Centre conjoint de 
recherches en communications sur l'Asie 
Pacifique (UQAM et Concordia) et le Projet 
Canada et Hong Kong (Joint Centre for 
Asia Pacific Studies - U of T et York). Les 
organisateurs du seminaire etaient le pro- 
fesseur Claude-Yves Charron et Jules 
Nadeau. On a presente quatre sujets, sur 
l'histoire (president, Michel Marcel), la 
communaute chinoise (president, Francois 
Vanasse), les relations economiques et 
commerciales (president. Alain Laroque). 
et l'immigration (president. Claude- Yves 
Charron). On propose de publier un vol- 
ume au cours de l'annee prochaine, base sur 
le seminaire. Les suivants ont participes au 
colloque: 

Phillipe Bertrand. Banque Hongkong, 

Montreal 
Leo Brown. Banque de Montreal 
Lucien Brunet, veteran canadien de la 

campagne de Hong Kong, 1941-45 
Joseph Bunkoczy, ministere des 

Communautes culturelles et de 

l'immigration 



Claude-Yves Charron, departement de 

Communication. UQAM; Centre conjoint 

de recherches en communications sur 

l'Asie Pacifique 
Luc Chartrand, VActualite 
Tammy Cheung. Festival international du 

cinema chinois 
Celia Chua, soeur Immaculee Conception, 

Amitie-Chine 
Claude Comtois. Centre des Etudes de 

l'Asie de l'Est, Universite de Montreal 
Pierre Danis. ministere des Communautes 

culturelles et de l'immigration 
Loy Denis, Association canadienne des 

etudes asiatiques 
Claude Fournel. ministere de l'Education 
Jean Goyer, ministere des Affaires interna- 

tionales 
Camille Gueymard. Telefilm Canada 
Pierre Hebert. ministere des Affaires inter- 
national 
Henry Ho. Le Permanent 
Alain Larocque. Raymond Chabot 

International 
Diana Lary, directrice du Projet de 

recherche Canada et Hong Kong, JCAPS 
Lau Tin-Yum, departement d'Arts plas- 

tiques, UQAM 
Therese LeBlanc. soeur Immaculee 

Conception 



Louis Leblanc, Levesque, Beaubien. 
Geoffrion 

Ernest Leong, Association commerciale 
Hong Kong-Canada, section Montreal 

Brian Lewis, departement de 
Communications, Concordia; Centre con- 
joint de recherches en communications 
sur l'Asie Pacifique 

Pascale Luc. Fondation de l'hotel chinois 
de Montreal 

Michel Marcil, S.J., Amitie-Chine, 
Montreal 

Paul Mayer, Association commerciale 
Hong Kong-Canada, section Montreal 

Elizabeth Morey. bureau du recteur, 
Concordia; Centre conjoint de recherches 
en communications sur l'Asia Pacifique 

Annick Nadeau. Communication. College 
Jean-de-Brebeuf 

Jules Nadeau. Centre conjoint de recherch- 
es en communications sur l'Asie 
Pacifique 

Niu Jingren. Service a la famille chinoise. 
Montreal 

Janet Rubinoff. coordinatrice, Projet de 
recherche Canada et Hong Kong, JCAPS 

Robert Thibault, faculte de Droit, 
Universite McGill 

Patrick Tsui, hotel Furama. Montreal 

Francois Vanasse. Sinocan, Montreal 

Julia Wang, Banque Nationale du Canada 



UPDATE 



Hong Kong and Its Hinterland: Workshop 



by Janet Rubinoff 
Toronto 



The fifth workshop of the Canada and 
Hong Kong Project was held in Vancouver. 
January 17-18, 1992. Entitled "Hong Kong 
and Its Hinterland." the two-day seminar 
was held at the Asian Centre of the 
University of British Columbia. Attended 
by over thirty participants, the workshop 
focused on the economic and social links 
between Hong Kong and Guangdong 
Province. PRC. It was convened by B. 
Michael Frolic, Dept. of Political Science, 
York University, and Graham Johnson of 
the Dept. of Anthropology and Sociology, 
UBC. 



The four papers presented included "The 
Economic Integration of Hong Kong with 
China in the 1990s: The Impact on Hong 
Kong" by Sung Yun-wing (Dept. of 
Economics, Chinese University of Hong 
Kong); "Hong Kong-Guangdong 
Interaction: Joint Enterprise of Market 
Capitalism and State Socialism" by R. Yin- 
wang Kwok (Center for Chinese Studies. 
University of Hawaii at Manoa); "Towards 
a Greater Guangdong: Hong Kong's 
Sociocultural Impact on the Pearl River 
Delta and Beyond" by Gregory Guldin 
( Department of Anthropology, Pacific 
Lutheran University); and "Changing 



Horizons for Regional Development: 
Continuity and Transformation in Hong 
Kong and Its Hinterland, 1950s to 1990s" 
by Graham Johnson (UBC). Presentation of 
the papers was followed by a roundtable 
discussion which closed the session on 
Saturday afternoon. Discussants included 
Aprodicio Laquian. Director. Centre for 
Human Settlements. UBC; Paul T.K. Lin, 
Institute of Asian Research, UBC; Terry 
McGee, Director, Institute of Asian 
Research; and Woon Yuen-fong, Dept. of 
Pacific and Asian Studies, University of 
Victoria. 



Lotto 6/49 in Hong Kong 



It is now possible to play Lotto 6/49 
directly from Hong Kong. An enterprising 
company has recently set up a subscription 
system which allows punters to play Lotto 
6/49 for periods of 1 to 52 weeks, using the 
same numbers for each draw. Subscriptions 
cost HK$400 (Cdn$60) to HK$ 12,000 (about 
Cdn$ 1 ,800), depending on the time period 
and the number of games played in each 
draw. Tickets are purchased on behalf of 
punters in Canada. There is no indication as 
to how these sums correspond to the actual 
cost of lottery tickets in Canada, which is 
Cdn$l (HKS6.70) per ticket. 



Lotto 6/49 is advertised as the "world's 
largest tax-free jackpot," "the most popular 
lottery game in the world," "operated and 
controlled by the Canadian Government." 
Though gambling is very much a part of 
Hong Kong life and people are used to big 
winners, the largest ever win on Lotto 6/49. 
quoted in HK dollars at $201,365,684.76, 
certainly makes this appear to be a very 
attractive way to make a bet. The company 
advertising the service, Wellco Limited, 
offers a "complimentary air passage and one 
week's vacation in beautiful Vancouver" to 
punters winning HK$338,0OO (over 
Cdn$50,000) or more. 



The brochure for the new service, which 
has been widely distributed in Hong Kong, 
has a bottle of Canadian champagne on the 
cover and is liberally dotted with maple 
leafs. There is no indication in the brochure 
as to whether the scheme is legal under 
Canadian law or not. 



The CANADA AND HONG KONG UPDATE is distributed free at your request. 

Please let us know if you would like to be on our mailing list by calling (41 6) 736-5784 ext. 2051 . 

Or write to us at the address below: 



Canada and Hong Kong Project 

JOINT CENTRE FOR ASIA PACIFIC STUDIES 

Suite 270, York Lanes 

York University 

4700 Keele Street 

North York, Ontario 

M3J1P3 











2 CANADA AND HONG KONG UPDATE 



Number 7 



SIMMER 1992 



Interview with David Lam, BC Lieutenant-Governor 



by Hugh Tan 

Vancouver 



In late May I held an interview with Lt. 
Governor David See-Chai Lam, which 
focused on his experience as an immigrant in 
Canada, his achievements, and comments on 
the recent immigration from Hong Kong. 

From Hong Kong to Canada 

According to the Lt. Governor, one of the 
main reasons his family decided to immigrate 
to Canada in 1967 was "a passionate love of 
trees, flowers and the natural environment." 
The Lam family had lived in the suburban 
area of Shatin in the New Territories of Hong 
Kong which was later developed into a city 
centre, surrounded by concrete buildings. 
While travelling in British Columbia, they 
enjoyed the clean air. water, beautiful gardens 
and grand snowy mountains. With the 
encouragement of the then Canadian 
Commissioner to Hong Kong. David Lam 
and his family moved to Vancouver. They 
found the area "paradise on earth" and deter- 
mined to stay. 

However, as Lt. Governor Lam explained, 
finding a job in "this earthly paradise" was 



not easy despite his education in the U.S. and 
his experience as a bank manager in Hong 
Kong. Although he was finally offered a posi- 
tion with Scotia Bank, he turned it down 
since the job meant returning to work in 
Hong Kong! At the suggestion of a friend, he 
became a real estate agent, which did not 
require much investment at the time. His new 
career was rough going at first for he did not 
sell a house for several months. As the Lt. 
Governor related, even now he still remem- 
bers the excitement of earning $400 from his 
first sale. The Lams celebrated by taking his 
friend's family out for steak at a small restau- 
rant. "This was our first steak dinner in 
Canada." Prior to this time, "We bought only 
ground beef in order to save money." David 
Lam recalled this experience as the "happiest 
day" in his family's early years in Canada. 
Later w ith the help of his friends, David 
Lam was able to establish about thirty compa- 
nies. "Thanks to Tien Shi, Di Li. and Ren He" 
(timeliness, favourable location, and good 
personal relations), all companies succeeded 
and earned good money. When he retired in 



1983. David Lam sold his companies and set 
up a charitable foundation in his and his 
wife's name. 

During their early, struggling years in 
Canada, the Lams, like other new immigrants, 
often compared their former life in Hong 
Kong with that in Vancouver. However, they 
soon made friends with people of many back- 
grounds and made deliberate attempts to 
completely integrate into Canadian society. 
David Lam explained that his companies 
employed over 100 workers, none of whom 
were of Chinese origin. He also did not read 
Chinese-language newspapers and wanted to 
become a "pure Canadian." 

East Plus West 

David Lam's desire to become Canadian, 
however, did not mean abandoning all 
Chinese cultural traditions. Nor did it mean 
forgetting his origins in Hong Kong or chang- 
ing his appearance in order to seem more 
"Canadianized." Instead, he emphasized that 
the most important thing was to change one's 
way of thinking. 

David Lam. cont'd page 2 



IN THIS ISSUE: 



David Lam 1 

Education Programs 4 

Hong Kong's Reactions to New Governor 5 

Trends in Immigration 6 

CAN-IMMIGRATION-NET 6 

per 

F1029.5 

H6 C36 



Changes in Family Class Dependency 7 

HK Immigrants in Canada 7 

Lotto 6/49 in Hong Kong: Stage Two 7 

New Canadian International School 8 

Other Canadian School Options in HK 9 

Concern over Rights to Privacy in HK 10 

Beijing Update 10 

Foreign Investment Protection 1! 



Premier Bob Rae's Visit to Hone Kong 1 2 

Mayor Joyce Trimmer 12 

New Brunswick Premier Visits Hong Kong.... 13 

Bi-cultural Consumers 13 

Tiananmen Memorial 14 

Project Workshop on China-HK Relations 14 

Canada-Hong Kong Database 15 

New Project Publications 16 



CANADA AND 


HONG KONG UPDATE 


Editors 


Diana Lary 




Bernard Luk 




Janet A. Rubinoff 


Illustration & 


IMS Creative 


Design 


Communications 


Contributors 


Philip Calvert 




Harriet Clompus 




Jane Greaves 




Bob Perrins 




Shum Kwok-cheung 




Hugh Xiaobing Tan 




David K. Tse 



Canada and Hong Kong Update is 
published 3-4 times a year by the 
Canada and Hong Kong Project 
Joint Centre for Asia Pacific Studies, 
Suite 270. York Lanes, 
York University. 4700 Keele St., 
North York, Ontario, 
CANADA M3J 1P3 

Telephone: (416) 736-5784 
Fax:(416)736-5688 

Opinions expressed in this newsjoumal 
are those of the author alone. 



CANADA AND HONG KONG PROJECT 



Co-Directors Diana Lary 

Bernard Luk 



Coordinator 



Janet A. Rubinoff 



Advisory Board David Bond 
Denise Chong 
Maurice Copithorne 
B. Michael Frolic 
John Higginbotham 
Graeme McDonald 
T.G. McGee 
Jules Nadeau 
William Saywell 
Wang Gungwu 



We want to thank the Donner Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 

This publication is free. 

Please call or write to us for past 

or future issues. 



According to the Lt. Governor, the combi- 
nation of eastern and western cultures is a 
"very powerful tool," which, if mastered, is 
always successful. On the one hand, western 
culture, including its predominant religion 
Christianity, is known for its aggressiveness 
and sense of mission. On the other, Chinese 
culture emphasizes moderation, and even 
"stepping back." These two cultures comple- 
ment each other, but people often tend to lean 
to one side or the other. 

Lam's motto is to live a "giving, caring, 
and sharing" life, principles which he 
attributes to his family and religious educa- 
tion. When he was a child, he mentioned, he 
would spend half his pocket money for candy 
and donate the other half. This habit of giving 
proved to be very important in his business 
success and career development. He made 
friends with many people, and in business he 
eventually had no difficulty borrowing 
money from the bank, buying goods on 
demand, or establishing jointly owned com- 
panies. 

He also attributes his appointment as 
Lieutenant Governor of British Columbia to 
this practice of "giving, caring and sharing." 
Although he never intended to receive any 
reward for his generous donations to educa- 
tional institutes, public parks and charity 
organizations, the provincial and federal gov- 
ernments recognized his long-time voluntary 
work in several big projects and his generosi- 
ty. He declined the nomination for Lt. 
Governor twice before finally accepting it. It 
was not an imitation of the famous Chinese 
three Kingdoms story in which Liu Bei, King 
of Shu Han, made three calls at the thatched 
cottage of Zhuge Liang. Rather it was a 
sense of mission and opportunity to utilize 
the unique position of Lt. Governor to 
accomplish his goals that prompted David 
Lam to finally accept the nomination. 

He assumed his job whole-heartedly and 
enjoys meeting people with the message of 
"good will, understanding and harmony." 
During the past 3 ] / 2 y ears of his Lieutenant 
Governorship, David Lam has travelled to 
every small town in British Columbia and to 
eastern Canada to deliver speeches, as well as 
abroad. In 1991 alone, he was invited to 
speak at 390 functions. On his busiest day, he 
spoke at 14 meetings, non-stop from early 
morning to late evening. The Lt. Governor 
writes all his own speeches and often delivers 
extemporaneous remarks to which his audi- 
ence responds very favourably. 



He not only goes out to meet people but 
also invites many guests to his residence. An 
average month sees some 2,000 people attend- 
ing various meetings and receptions at 
Government House. In order to deal with this 
"full time plus" work, he has increased his sec- 
retarial staff from two to eight people. How- 
ever, he finds his heavy workload "enjoyable." 

An important project now under construc- 
tion at Government House is the landscaping 
of twelve new flower gardens. One-third of 
the funding is from the provincial govern- 
ment, one third from David Lam and his 
wife, and the remainder from public dona- 
tions, which have amounted to several hun- 
dred thousand dollars. The Lt. Governor 
called for volunteers to work on the gardens 
and was surprised to have more than 300 peo- 
ple register. This spirit is in line with David 
Lam's motto of "giving, caring and sharing." 

Recent Hong Kong Immigrants 

Having been an immigrant himself, David 
Lam understands many of the problems and 
difficulties faced by recent migrants from 
Hong Kong. He commented that these new 
immigrants are not like the older Chinese 
generations who came as physical labourers; 
neither are they the same as David Lam's 
generation who were middle or lower-middle 
class. Many of the recent Hong Kong immi- 
grants come with an upper or upper-middle 
class life style. He contends that this has 
made it difficult for them to socialize with 
ordinary Canadians with whom they have lit- 
tle in common. There are a number of other 
cultural differences which have led to misun- 
derstandings. The Lt. Governor cited the 
example that while many Chinese consider it 
polite to talk to others without eye contact, 
Canadians find this rude. The tendency for 
some Hong Kong people to treat life "as a 
continuous gamble" to make money also pre- 
vents recent immigrants from integrating into 
Canadian society. 

The Lt. Governor strongly feels that the 
best way for newcomers to integrate is to vol- 
unteer to work with people of diverse racial 
and social backgrounds. He believes that 
transcending these barriers reduces potential 
tensions between new immigrants and local 
people. At the same time he also sympathizes 
with those people who, after trying very hard, 
still cannot find a job in Canada and must 
return to work in Hong Kong. However, for 
those who only treat life as "continuous 
gambling to make big money." he suggests 
they change their way of life. 



2 UPDATE 



David Lain points out thai he is not a rep 
resentative of Hong Kong immigrants, nor is 
he appointed by the Hong Kong government. 
He is the Lieutenant Governor of all the peo- 
ple o! British Columbia, regardless of their 
racial origins. Though he has made consider- 
able effort to promote the relationship 
between B.C. and Hong Kong, this is for the 
good of the province and the whole country. 
He is equally glad to promote relationships 
with other countries for the benefit of B.C. 
and Canada. However, he feels the thought 
that "because the B.C. Lt. Governor is a 
Chinese-Canadian, the Chinese community 



should be treated favourably" is harmful and 
dangerous to building a harmonious society. 

The Canada and Hong Kong Research 
Project 

Finally, David Lam stressed that he is in 
favour of increasing mutual understanding 
between Canadians and Hong Kong people. 
He feels the Project is "taking a correct and 
worthwhile course." and finds our Updates 
"interesting and informative." See his letter 
to the Project below. 

He also commented that the task of 
achieving mutual understanding is "not an 



easy one" and may require more than one 
generation. The first thing to do is to change 
attitudes. He dislikes the word "tolerate" in 
dealing with racial relations because he feels 
it carries a negative tone: "you have short 
comings, but I can still bear with you." The 
1 ,t. Governor suggests using a more positive 
word like "celebrate" to refer to the accep- 
tance of differences between people of 
diverse backgrounds. "People can learn from 
each other to build a harmonious society." 
Therefore, this is the time for changing atti- 
tudes - for Hong Kong immigrants as well as 
for other Canadians. 




David C. Lam (above), Lieutenant- 
Governor of British Columbia, 

and (right) his letter to the 

publishers of the Canada and 

Hong Kong Update 




GOVERNMENT HOUSE 
1401 ROCKLAND AVENUE 

VICTORIA, BRITISH COLUMBIA 
V8S 1V9 



In my capacity as the representative in British Columbia 
of Her Majesty The Queen of Canada, I am delighted to have 
this opportunity to extend my warmest best wishes to the 
publishers of Canada and Hong Kong Update . 

I have had a recent opportunity to read the latest edition 
of this publication, and I congratulate everyone associated 
with this interesting and informative newsjournal. 

In addition to its obvious goal to provide information for 
readers interested in the relationship between Canada and 
Hong Kong, I believe that it serves a most important role 
as a cultural bridge - not only between Hong Kong and 
Canada, but between people of diverse cultures in Canada. 

It is, therefore, a significant vehicle for the promotion 
of better understanding, goodwill and harmony. 

I wish the Canada and Hong Project well in its continuing 
efforts to disseminate information of significance to 
Canada's international relations with Asia. 

Sincerely, 



\j%*4* ^ 



David C. Lam 

Lieutenant-Governor of British Columbia 



UPDATE 3 



Education Programs for Festival Hong Kong '92 



On June 29, Mr. James So, Hong Kong's 
Secretary for Recreation and Culture, offi- 
cially launched Festival Hong Kong 92 at a 
press conference in Toronto. This month- 
long extravaganza, largely initiated by the 
Hong Kong government, was planned as a 
follow-up to the Canadian-sponsored Festival 
Canada 91 . held last June in Hong Kong. The 
two festivals were developed to "promote 
friendship and reinforce the growing partner- 
ship between the two regions." 

Festival events will be held this fall in 
five cities across Canada, opening in Toronto 
on September 26 and closing in Vancouver 
on October 21 . Other festival cities include 
Ottawa, Montreal and Calgary. An assort- 
ment of cultural, business, trade, educational, 
sporting and social events are scheduled to 
promote the rich history and tradition of 
Hong Kong culture — from dance perfor- 
mances by the Hong Kong Ballet and Chung 
Ying Theatre Company to sport demonstra- 
tions and a Hong Kong film festival. 

The local organizing committee chairmen 
are as follows: Maurice Copithorne, former 
Commissioner for Canada in Hong Kong and 
Professor of Law at ubc, Vancouver: S. 
Robert Blair, C.C., Chairman Emeritus and 
Honourary Director of the nova Corporation 
of Alberta, Calgary: Dr. Robert Bandeen, 
Trustee of the Lester B. Pearson College of 
the Pacific and Governor of Olympic Trust of 
Canada. Toronto; Frank Ling, an architect 
and National President of the Hong Kong- 
Canada Business Association, Ottawa; and 
Bob Issenman, partner of Martineau Walker 
and Guest Lecturer on Asian Affairs, McGill 
University. Montreal. 

Among the many scheduled events are 
several programs with a more academic 
focus planned for Toronto and Vancouver. 
On Sept. 27-Oct. 3, a University Education 
Programme will be co-sponsored by the 
University of Toronto and York University. 
The programme consists of three main parts: 
a public conference entitled "Societies in 
Transition," a series of public lectures, and 
several focused workshops. The primary 
themes are education, the impact of technolo- 
gy on society, and societal change. 

Keynote speakers at these events include 
Wang Gungwu, Vice Chancellor of the 



by Janet Rubinqff 
Toronto 

University of Hong Kong; Y.C. Cheng, 
Director, City Polytechnic of Hong Kong; 
Charles Kao, Vice Chancellor of the 
Chinese University of Hong Kong; Rosanna 
Tarn, former member of the hk Executive 
and Legislative Councils and graduate of 
U. of T. Faculty of Social Work; Lap-chee 
Tsui, co-discoverer of the cystic fibrosis 
gene; and Y.W. Kan, world leader in the 
field of molecular biology. 

In addition to public lectures, the focused 
workshops include Bio-medical Research, 
co-chaired by Lap-chee Tsui and C.C. Liew 
(U of T); Education Connections, organized 
by Bernard Luk (York); Political Transition 
in Hong Kong, chaired by Paul Evans 
(York); Business Law Issues, chaired by R. 
Sharpe (U of T); Constitutional Law Issues, 
convened by William Angus (York); Societal 
Issues, organized by Bernard Luk (York), and 
Visa Students in Metro Toronto, jointly con- 
vened by Paul Lee and Kathryn Mickle 
(York). For additional information on the 
Education Programme, contact Thomas Wu, 
Coordinator (978-4649) or Linda Arthur, 
Institute for International Programmes 
(978-1486; fax 971-1381). 

Two of these workshops are sponsored by 
the Canada and Hong Kong Project. The 
Hong Kong Bill of Rights and Right to 
Privacy Workshop, convened by W. Angus, 
will be held on October 2 at York University. 
Speakers on the Bill of Rights include 
Andrew Bymes and Nihal Jayawickrama, 
both of the Faculty of Law, University of 
Hong Kong. Raymond Wacks, Associate 
Dean of the Faculty of Law, hku, and Eva 
Lau, Faculty of Law, hku, will address the 
issue of privacy and access to information. 

Planned for October 3, the Hong Kong 
Visa Students Workshop will explore the 
problems and perspectives of secondary and 
university-level visa students. Convenors 
Kathryn Mickle and Paul Lee will present the 
findings of their research on hk visa students 
in the Metro area. The workshop will also 
feature speakers from the Vancouver Board 
of Education, Ontario Ministry of Colleges 
and Universities, and Ontario Community 
Colleges. The all day session will be held at 
York. If you would like to attend, please con- 
tact Janet Rubinoff, Coordinator of the 



Canada and Hong Kong Project (736-5784). 

Other events scheduled for Toronto 
include a downtown "dragon" parade on 
Sept. 26; a Hong Kong Film Festival (Sept. 
10-19), featuring the work of Sylvia Chang 
(Ai Chia), Asian film star, director and pro- 
ducer; the Scarborough Lantern Festival 
on Sept. 29; "Come Celebrate Festival 
Hong Kong 92 in Chinatown" (Oct. 3); 
Hong Kong Carnival at the Metro Toronto 
Convention Centre (Oct. 3-4); the Art of 
Chinese Theatre - Made in Hong Kong, 
featuring Cantonese opera. (Aug. 15-Sept. 
27) at the Royal Ontario Museum; and a 
Business Seminar on tourism, investment 
and development opportunities (Oct. 1 ), fea- 
turing keynote speaker the Right Hon. 
Baroness Lydia Dunn. 

Educational highlights scheduled for 
Vancouver include a 2-day Conference on 
Hong Kong: Economic Issues, Legal 
Issues, Women's Issues, and Human 
Settlement. Scheduled for October 16-17, 
the meetings will be held at the David Lam 
Centre for International Communication, 
Simon Fraser University at Harbour Centre. 
The Canada and Hong Kong Project will 
sponsor the October 1 7 session on Women 
of Hong Kong, which will be chaired by our 
director. Diana Lary (ubc). Focusing on both 
professional and working women in Hong 
Kong and on Hong Kong women in Canada, 
the workshop will explore the special quali- 
ties of Hong Kong women which have led 
them to play such an important role in the 
territory's development and the way these 
qualities have manifested themselves in the 
process of settlement in Canada. Featured 
speakers include Emily Lau. Legislative 
Council, Hong Kong; Janet Salaff, Dept. of 
Sociology, Univ. of Toronto; Bernard Luk, 
History Dept., York University; Lillian To, 
success, Vancouver; Elizabeth Johnson, 
Museum of Anthropology, ubc; Lucy 
Roschat. Cathay International TV, Vancouver; 
and May Partridge, Victoria. 

Our Fall Update, scheduled for mid- 
September, will include a more detailed 
schedule of events for Festival Hong 
Kong 92. 



4 UPDATE 



Hong Kong's Reactions to New Governor 



The long-awaited appointment of the 
new Hong Kong governor w as announced 
on 24 April 1992. Mr. Christopher Patten, 
chairman of the British Conservative Party, 
will serve as the 28th governor of the terri- 
tory and is expected to remain until the 
1997 return of Hong Kong to China. The 
following report reflects the different reac- 
tions of Hong Kong people to the unexpect- 
ed appointment. 

Although there was speculation prior to 
the announcement that a politician, rather 
than a civil servant, would be the next gov- 
ernor. Mr. Patten was not on the list of pos- 
sible candidates until his defeat in the uk 
genera] elections in early April. The imme- 
diate criticism in Hong Kong w as that 
Prime Minister John Major's appointment 
of Patten was a hasty, political manoeuvre 
to compensate for his election loss. 

Reflecting the anxiety that the interests 
of the territory w ere not respected by the 
British Government, an editorial in Ming 
Pao [25 April 1992] stated that for the last 
five years of the transitional period. Hong 
Kong would be led by someone who was 
unfamiliar with Hong Kong and Chinese 
affairs. It argued that the selection of a 
politician who had just suffered a major 
election defeat was a mockery to the people 
of Hong Kong. 

Other opinions expressed a more 
favourable attitude to the new governor. 
Some of the media recognized that despite 
Patten's inexperience in Hong Kong and 
Chinese affairs, his appointment did have 
advantages for the territory. He has been 
acclaimed a tough, realistic man who will 
bring a different tone to the government of 
Hong Kong. Not only is Patten a senior 
politician in the Conservative Party but, 
more importantly, he is a personal friend of 
the Prime Minister and the Foreign 
Secretary, Douglas Hurd. Thus, his close 
contact with the top figures of the uk 
Government puts Hong Kong on the British 
agenda. John Major has given assurances 
that Patten would have direct access to him 
and to the Foreign Secretary at all times [see 
South China Morning Post (SCMP), 25 
April]. 



by Shum Kwok-cheung 

H< 'in; Kong 

One article in the Hong Kong Economic 
Journal [25 April] stressed that Patten 
might signify a new style of administration. 
In fact, it was reported by the SCMP [25 
April] that when asked whether Downing 
Street or Hong Kong would come first in a 
conflict of interests. Patten responded that 
he would stand up for the interests of the 
people of Hong Kong. 

China's response was also positive, and 
Beijing leaders officially expressed the hope 
that Sino-British cooperation would contin- 
ue [SCMP, 26 April 1992]. An editorial in 
the pro-China newspaper. Wen Wei Po. [25 
April] commented that Patten's appointment 
was beneficial to Hong Kong's administra- 
tive efficiency in the remaining years of 
British rule and would establish a smooth 
passage for the transitional period. 

A telephone survey, conducted in late 
April and printed by Sing Tao Daily on May 
1-2, reflects the opinions of the general pub- 
lic of Hong Kong. When respondents were 
asked to compare the incumbent Governor. 
Lord Wilson, and the newly appointed 
Patten, with regard to their abilities to main- 
tain Hong Kong's prosperity and stability, 
over 90% gave a score of 50-100 to Wilson. 
(The minimum passing score was 50.) 
Reflecting some scepticism towards 
Patten's appointment, only 75% accorded a 
passing score to the latter. 

When asked to assess the performance of 
Wilson on specific policies, respondents 
showed most satisfaction with the former 
governor's handling of Hong Kong-Chinese 
relations. Ironically, many Hong Kong peo- 
ple believe that the change of governorship 
is due to dissatisfaction of Downing Street 
with Wilson's weak stand in facing China. 
Such an attitude demonstrates a discrepancy 
between the UK government and Hong Kong 
people on how to deal with Beijing. 

To the question. "Is it necessary for Mr. 
Patten to get approval from China before a 
major decision is made." 34.7% of those 
interviewed agreed and 46.7% disagreed. 
However, when asked whether it is neces- 
sary for Mr. Patten to stand up to China to 
check its interference in Hong Kong internal 
affairs, only 36% agreed, while 48.1% dis- 



agreed. These results demonstrate that the 
opinions of Hong Kong people on facing up 
to China are ambivalent. 

Commenting on this uncertainty. Prof. 
Lau Siu-kai felt these results reflected the 
declining authority of the Hong Kong gov- 
ernment and the inevitability of China's 
interference. He further stated that a previ- 
ous opinion survey had indicated the major- 
ity of Hong Kong residents supported the 
autonomy of the territory's administration, 
but this trend was changing. The results of 
the new survey reflect the realization of 
Hong Kong people that it will be difficult 
for the HK government to make any major 
decisions in the next five years without the 
approval of Beijing. 

While the change of governor may bring 
about a new style of administration, the 
political development of Hong Kong has 
been constrained by the Basic Law. Room 
for change seems to be limited unless it is 
approved by China. Governor Wilson fully 
understood the difficulties he faced in deal- 
ing with China. He warned his successor 
not to let working relations w ith China dete- 
riorate: otherwise it would be difficult for 
the government of Hong Kong to run [HK 
Standard, 27 April 1992]. 

The beginning of July marked the end of 
Lord Wilson's term as governor and the 
start of Chris Patten's appointment. Concern 
in Hong Kong that he knows little about the 
territory's affairs has recently been replaced 
by a feeling that so long as Patten has the 
ear of the British government and is w illing 
to stand up to Chinese pressure, he may be 
more useful for Hong Kong than a gover- 
nor, such as Lord Wilson, who has a great 
deal of knowledge about China. This pre- 
sent enthusiasm for Patten w ill make the 
start of his governorship smooth. However, 
the enthusiasms cannot disguise the fact that 
the road ahead for the last British governor 
of Hong Kong is very complicated and that 
the expertise in dealing with China that 
Lord Wilson displayed may still be very 
important. 



UPDATE 5 



Trends in Immigration from Hong Kong 



by Diana Lary 
Vancouver 



Canada 

Communicates in 

Hong Kong 



Over the past year there has been a sharp 
decline in the number of applications for 
immigration from Hong Kong. The decline 
may be attributed to the booming economy 
in Hong Kong and to the recession in 
Canada. The emigration fever of the past 
few years seems to have abated. Another 
explanation might be that the pool of eligi- 
ble applicants is drying up and that there are 
fewer people in Hong Kong who are eligi- 
ble to migrate to Canada. This is unlikely to 
be the case with the independent class, 
given the number of young people passing 
through university or college in Hong Kong 
(or abroad) each year and getting to levels 
of skill which would qualify them for an 
application to migrate to Canada. The fig- 
ures below are for principal applicants, not 
individuals. Each application accounts, on 
average, for just under three people. 



Applications from Hong Kong, by class 1 TOTAL 



1989 

Family 7697 

Assisted relatives 3009 

Independent 3227 

Business 8001 

Retirees 

TOTAL 21934 



1990 1991 

3900 4099 

3093 1945 

3456 1 1 23 

4413 1358 

3810 903 

18672 9428 



The percentage of applications from 
family members of people already in 
Canada is rising rapidly, from 21% in 1990 
to 43% in 1 99 1 . This is matched by a con- 
siderable drop off in the number of indepen- 
dent (skilled workers) applications, from 
15% in 1989, to 19% in 1990, and only 12% 
in 1991. This drop can be seen as a natural 
part of the process of chain migration, in 
which the best able to adapt members of the 
family settle first, followed by relatives who 
need the benefit of family sponsorship to 
qualify as immigrants to Canada. There may 
also be cases in which a person who might 
qualify as an independent (a spouse or 
unmarried child) would still prefer to apply 
through the family class because of the pro- 
cessing priority given to this class. 



Processing priorities put family and busi- 
ness classes at the top of the list. Given the 
variation in processing time, there can be no 
correlation between applications and visas 
issued. Visas issued may be for applications 
which were made several years before. The 
number of visas issued is still rising, from 
22,566 in 1990 to 26,647 in 1991. The fami- 
ly class again shows a major leap, from 
22% in 1990 to 43% in 1991. The following 
figures are for individuals to whom visas 
were issued: 

Visas issued to Hong Kong residents 

1989 1990 1991 

Family 3566 4937 11513 

Assisted relatives 1580 2297 2206 

Independent 9851 6855 1668 

Business 7133 6799 8159 

Reti rees 1678 3101 

22130 22566 26647 



From the time of their medicals, which 
are given shortly before visas are issued, 
successful applicants have up to one year to 
land in Canada. This time lag means that it 
is impossible to make an exact correlation 
between figures for visas' issued and land- 
ings in Canada, which may well occur in the 
calendar year after a visa is issued. There is 
also the possibility that some people who 
are issued visas will not use them. 



Landings by class 

1989 1990 1991 

Family 3252 5606 8188 

Assisted relatives 844 2495 2300 

Independent 8923 12779 3037 

Business 5319 6787 6339 

Retirees 1502 1577' 2182 

Others 122 22 5? 

TOTAL 19962 29266 22105 



'Statistics from the Commission for Canada. Hong 
Kong. 



The volume of enquiries at the 
Commission for Canada in Hong Kong is 
enormous. To meet the demand, the 
Immigration Section of the Commission 
introduced a year ago an on-line data sys- 
tem, can-immigration-net, which provides 
answers to most of the questions which 
prospective immigrants and immigration 
professionals, such as lawyers and consul- 
tants, may ask. The system provides infor- 
mation on immigration policy and regula- 
tions, and on many aspects of Canadian life 
- housing, social benefits, education, medi- 
cal care, income tax, etc. It also provides 
regularly updated information on occupa- 
tional demand in Canada (for independent 
immigrants and assisted relatives), on pro- 
cessing times for immigrant applications in 
various classes, and on investor projects. 
Anyone with access to the iNET system can 
use can-immigration-net for a monthly fee 
of HK$80 (about CDN$12). The only restric- 
tion is that since the information provided 
is copyrighted to the Commission, it cannot 
be sold. 

The network helps users to understand 
the complex Canadian system of immigra- 
tion because it can take them through the 
procedures step by step, explaining what is 
necessary as a user goes along. It makes it 
possible for people to get information 
quickly and at any time of the day or night - 
information which previously they might 
have had to queue up for hours to get. 
Information can be down-loaded onto PC's, 
so that people can study information care- 
fully. The system also takes pressure off the 
immigration staff of the Commission, who 
previously had to spend a lot of time 
answering the same questions over and over 
again. 

There is no parallel system in operation 
in Canada, where enquiries still have to be 
made to ceic offices. However, this system 
can be accessed from Canada through iNET 
2000. Subscriptions cost $3.30 per month, 
with a feature charge of between $ 1 2.35 and 
$16.50 an hour. Information on subscrip- 
tions to CAN-IMMIGRATION-NET Can be 

obtained from inet Customer Assistance 
Centre, 1-800-267-8480. 



6 UPDATE 



Changes in Family Class 
Dependency 

Over the past few years, there has been 
a considerable increase in the proportion of 
immigrants from Hong Kong who migrate 
in the family class. A recent change in the 
definition of dependency, which came into 
force on March 27, may have some impli- 
cations for emigration from Hong Kong. 
The former definition saw dependency of 
children on their parents in terms of marital 
status, something w hich stopped once a 
child married. Parents could sponsor an 
unmarried child of any age but could not 
sponsor a married child. Parents could 
sponsor a middle-aged bachelor but not an 
eighteen-year-old widowed daughter. 

This definition has been replaced by one 
which reflects economic dependency on 
parents. Children who are in full-time study 
and have been continuously supported by 
their parents since they were nineteen can 
qualify for sponsorship, while children who 
are no longer studying become ineligible 
for direct sponsorship once they are nine- 
teen. Children with a disability, who are 
unable to work, can be sponsored at any 
age. The new regulations will be a disap- 
pointment for unmarried, working children 
over nineteen, who become ineligible for 
sponsorship as dependents. They can still 
get some help from their families in apply- 
ing as assisted relatives, but this process 
takes much longer than an application as a 
dependent in the family class. Assisted rel- 
ative applications are processed as a very 
low priority, while family class has top pri- 
ority. The minimum processing time for a 
family class application is now about eigh- 
teen months, while an assisted relative 
application takes about forty months. 

The regulations will encourage young 
people over nineteen, who are in full time 
study but already married, to come to 
Canada, since now they will not have to 
make personal applications for admission 
but can be sponsored by their parents. 



Hong Kong Immigrants in Canada: Highlights 



One of the most systematic studies yet 
conducted on Hong Kong immigrants has 
recently appeared. This study was published 
in 1991 on the basis of data drawn from a 
twelve page questionnaire, completed by 
5 1 2 immigrants from Hong Kong who 
entered Canada after 1980. It was conduct- 
ed by the Alberta Career Development, the 
Hong Kong Institute of Personnel 
Management and the Canadian 
Employment and Immigration Commission. 
The report found that the great majority of 
immigrants were pleased with their decision 
to move to Canada; 56% felt that it had 
been a good decision, 24% an excellent one. 
Only 1 % felt that they had made a dreadful 
mistake. The respondents were in 
Vancouver. Edmonton and Toronto, most of 
them between 30 and 39. One third had a 
university degree; almost 60% had complet- 
ed their education in Hong Kong, and 22% 
in Canada. Most could function in English, 
very few in French. 

Work experience in Canada was mixed. 
The majority found their first job within 
three months of arriving in Canada but had 
to take a drop in income and status. While 
23% reported no change in income. 46% 
recorded a drop and 3 1 % a rise. A lowering 
of occupational status was experienced by 
62%. while 25% saw no change, and 13% 
felt that their status had risen. The pattern of 
change in income was quite marked. At the 



bottom and top ends of the income scale 
people had earned more in Hong Kong than 
they did in Canada, but in the middle 
income brackets ($15,200 to $59,999) peo- 
ple earned more in Canada than they had in 
Hong Kong. Twenty per cent of the respon- 
dents were earning $ 1 5,000 to $22,000, 
25% $22,000 to $37,000. and 15% $38,000 
to $60,000. 

Fifty-three per cent of the respondents 
were definitely planning to stay in Canada 
permanently; 31% were undecided, while 
only 16% definitely wanted to go back to 
Hong Kong. That 16% was made up largely 
of younger people who have experienced 
some difficulty in adjusting to Canada. 
They were attracted to Hong Kong particu- 
larly by the promise of higher salaries. In 
terms of attributes, respondents rated 
Canada higher for housing, education, 
neighbours, and crime control, while Hong 
Kong scored highest for shopping and 
social life. 

For further information contact: 

Dr. William Wong 

Alberta Career Development and 

Employment Policy and Research 

Division 

8th Floor, City Centre, 10155-102 Street 

Edmonton, Alberta T5J 4L5 

Tel: 403-427-4746 

Fax: 403-422-0897 



Lotto 6/49 in Hong Kong: Stage Two 



In the last Update it was reported that it 
was now possible to play Lotto 6/49 direct- 
ly from Hong Kong. It was also mentioned 
that it was not clear if the promotion and 
marketing of the lottery tickets was legal 
under Canadian law. 

Subsequently, Wellco, the company 
w hich promotes the sale of the lottery tick- 
ets in Hong Kong, has come under police 
investigation. The company has admitted 
that officers of the Commercial Crime 
Bureau have collected some of its files for 



the purpose of investigation. The Consumer 
Council of Hong Kong issued a statement in 
early April to the effect that Wellco was nei- 
ther authorized nor licensed to sell Lotto 
6/49 tickets in Hong Kong. The statement 
also inferred that the hk$20 ticket price was 
much higher than the price charged for tick- 
ets in Canada. Wellco has removed the 
phrase 'operated and controlled by the 
Canadian Government' from its promotion- 
al literature, but continues to sell tickets in 
Hong Kong. 



UPDATE 7 



Success for New Canadian International School 



by Harriet Clompus 
Hong Kong 



The new Canadian International School 
(CIS) in Hong Kong opened its doors to over 
80 students last fall. It was officially opened 
on 15 November 1991 by the Hon. Otto 
Jelinek, Canada's Minister of National 
Revenue, and Mr. James So, Secretary for 
Recreation and Culture in Hong Kong. Also 
attending the opening ceremony was the 
Commissioner for Canada in Hong Kong, 
John Higginbotham. The school has been an 
impressive success this year, and over 200 
children are expected to enrol next 
September. Projected enrolments are for 900 
students by 1995 (see South China Morning 
Post, 1 July 1992, Canada Supplement, p. 10). 

The School was established in response to 
the Hong Kong government's predicted short 
fall in places for students requiring a North 
American-type curriculum and a demand by 
Hong Kong-bom Canadians for an education 
using Cantonese, as well as French and 
English, as the medium of instruction. A 
need was recognized for a school that would 
allow children to come from Canada with 
few adjustment problems and enable students 
returning from Hong Kong to integrate 
smoothly back into the Canadian education 
system. 




Canadian International School students in 
the playground 

In 1990 a recommendation from the 
Hong Kong Government's International 
Business Committee initiated discussion 
between the North American Chambers of 
Commerce and the government on how a 
projected shortfall of places should be met. 
According to Vincent Lee, the 1990 
Canadian Chamber President, these discus- 
sions indicated "the importance the commer- 



cial sector attached to provision of high-qual- 
ity Canadian education within the territory as 
a means of attracting more Hong Kong emi- 
gres back." Meetings between the Education 
and Manpower Department and the Canadian 
and American Chambers of Commerce 
resulted in the decision to set up a new 
Canadian International School, initially cater- 
ing to primary level students. It was deter- 
mined that other schools in Hong Kong with 
an accredited Canadian curriculum were 
directed primarily at preparation of students 
for migration to Canada rather than for 
returning emigres. Not only would such a 
new school be attractive to returning 
Chinese-Canadians but would also be an 
important factor in their decision to return to 
Hong Kong. 

In December 1990, the Canadian 
International School Foundation (CISF) was 
established as a non-profit organization for 
fund raising and planning for the new school. 
Represented on the original board were 
members of the Canadian Club, the Canadian 
Chamber of Commerce, and the Chinese 
Canadian Association, while Commissioner 
John Higginbotham served as an ex-officio 
founding member. Seven of the twelve 
founding members were from the Board of 
the Chinese Canadian Association (CCA), 
whose aim, according to former Chairman 
Felix Fong, was "looking after the interests 
and welfare of Chinese Canadians in Hong 
Kong." 

The cca has taken a leading role in fund 
raising activities for the new school. The 
speed with which the CIS Foundation worked 
to set up the new international school within 
the territory was impressive, particularly 
since it did not receive any financial assis- 
tance from the Hong Kong or Canadian gov- 
ernments. Fund raising events included a 
"Gala Premier" showing of Teenage Mutant 
Ninja Turtles: the Ooze in July 1991, which 
earned hk $1,000,000. 

The as opened last September with 
almost 100 students in kindergarten to grade 
five. Sixty per cent of these are Hong Kong- 
born Canadians, almost twenty per cent com- 
ing directly from Canada. Next September, it 
is expected that sixty per cent will come 
directly from overseas, mostly from Canada. 



Although the school gives preference to 
Canadian students, it is open to all nationali- 
ties. Presently there are pupils from six dif- 
ferent countries according to its principal, Ian 
Robertson, making it "truly international." 

The school has been advertised in both 
English and Chinese local newspapers, as 
well as in Canadian editions of Hong Kong 
Chinese newspapers, like Sing Tao. Starting 
in April, it has also been promoted in the new 
weekly Canadian edition of the South China 
Morning Post. However, Mr. Robertson indi- 
cated, "The greatest response has been 
through word of mouth recommendation." 

Principal Ian Robertson, who was hired 
from Canada in April 1991, has taught in 
the Canadian public school system, as well 
as in an oil company-sponsored school in 
Libya and the Kuwait English school. He 
explained that the mandate of the cis is "to 
educate the whole child - academically, 
socially and emotionally - to prepare him 
or her to participate fully in a rapidly- 
changing global society." 




Canadian International School 

Principal Ian Robertson & Brenda Heward 

with teacher and students 

The school is essentially trilingual and 
offers a curriculum based on a combination 
of courses from Ontario and British 
Columbia. It is distinguished from other 
Canadian curriculum schools in Hong Kong 
by its strict English language entry require- 
ments which disqualify many local prospec- 
tive applicants. It differs also in its extensive 
Cantonese program with instruction starting 
in preparatory class. Compulsory French is 
introduced in Grade 4. 



8 UPDATE 



Tuition is relatively affordable at 
hk$25,000 (about cdn$3,850), plus an indi- 
vidual debenture fee of hk$ 1 5,000 or a 
hk$75,O0O transferable corporate debenture. 
A scholarship fund for pupils in financial 
need has been set up with a donation of 
hk$400,000 from the proceeds of Festival 
Canada '91, held in Hong Kong last June. 

An indication of the as Foundation's con- 
fidence in the institution's continued viability 
after 1997 is its plans to increase the school 
by a grade each year with grade 6 classes 
starting this September and K-12 by 1997. 
Accreditation, which is not required for the 
primary curriculum, will be sought when the 
secondary grades start, and Mr. Robertson 
indicated that the school will probably align 
with the Ontario system. 

At present the school is located in the for- 
mer premises of the Chinese International 
School in So Kon Po. However, the 
Foundation has plans in progress to build its 
own facility within the next five years, and 
negotiations are already under way for a site 
within the area. The Hong Kong government 
has indicated a land grant will be available, 
but much of the cost of the expansion must be 
met by the Foundation. 

According to Brenda Heward, Director of 
Development of the cisf, "two to three major 
fund raising events will be organized each 
year." The first of these events will be an invi- 
tation performance by the National Ballet of 
Canada at the Hong Kong Arts and Cultural 
Centre. The cost of the evening will be 
hk$ 1 ,000 (appoximately cdn$ 1 50) per per- 
son, with all proceeds going to the school. 

The Board of Governors, which has drawn 
new members from the wider Canadian com- 
munity in Hong Kong, is now divided into five 
working groups, one of which focuses on fund 
raising. The school is also supported by a very 
active Parents Association, with several parents 
helping at the school on a regular basis or for 
special events. Such help includes designing 
and manufacturing the school uniform. 

Mrs. Denise Chu, a Hong Kong-bom 
Canadian who lived in Toronto for ten years 
before returning to the territory, has two chil- 
dren in the school and helps out there once a 
week. She is very committed to the as, and 
undoubtedly spoke for many other parents 
when she explained. "We feel very lucky to 
have this school. Now we don't have to rush 
back to Canada." Her words indicate that the 
Foundation is succeeding in its aim to provide 
a quality education with a Canadian curricu- 
lum in Hong Kong. 



Other Canadian School Options in HK 



by Harriet Clompus 
Hong Kong, 



When the Canadian International School 
(CIS) opened last fall, the local media hailed it 
as the first Canadian school in the territory. 
This report drew a swift rebuttal from the 
principals of three existing accredited 
Canadian curriculum schools. In a letter to the 
South China Morning Post, they pointed out 
"that there are many other schools providing 
Canadian programs in Hong Kong." 

The longest established of these is the 
Canadian Overseas Secondary School found- 
ed in 1983, which provides Ontario programs 
from grade 9 to 12, allowing students to 
acquire Ontario Academic Credits (oac). 
Principal Alvin Gilles explained that the 
school is a profit-making institution managed 
by a local company but owned by South East 
Asia Preparations Ltd. of Toronto. School 
fees of hk$38,0O0 (about cdn$5850) in 1991 
make this the most expensive Canadian cur- 
riculum school in Hong Kong. 

This spring there were 550 pupils of 
whom 90% were Hong Kong Chinese and 
10% other nationalities, including, Mr. Gilles 
said, "a smattering of returned Hong Kong 
Chinese." Given the student composition and 
the provision of remedial English programs, it 
is clear that the school is geared primarily 
towards local students who hope to enter ter- 
tiary education overseas. 







—i J 



Canadian Overseas Secondary School 

The Delia School of Canada (dsc) was 
founded in 1987 and is one of many private 
schools of all types managed by the profit- 
making Delia Group within Hong Kong. It 
also manages a Delia school in Toronto. DSC 
follows an Ontario and Maritime accredited 
curriculum from grade 1 to 12oac, and at pre- 
sent has a total of 700 pupils enroled. 



According to its principal, Mr. Alvin 
Mistruzzi, there are no statistics available for 
nationality of DSC pupils, but he estimated that 
approximately one-third of the students are 
ethnic Chinese. Of these, he did not know 
how many held Canadian citizenship. The 
remaining pupils come from several different 
countries, including Korea, Japan, and 
Australia. English as a Second Language (esl) 
is offered, and a "heritage language program" 
offering French, Chinese, Korean and 
Japanese will be given from this September. 
Fees for dsc are hk$2 1 ,400 (cdn$33O0) for 
primary and hk$25,000 (cdn$3850) for sec- 
ondary school in 1991-92. 

When asked whether dsc had been affect- 
ed by competition from the Canadian 
International School, Mr. Mistruzzi argued 
that the two schools had very different mar- 
kets. "The as is for returned Hong Kong 
Chinese so at least two-thirds of our students 
don't even qualify to go there." Although 
preference is given to Canadian citizens, the 
as has no restrictions on nationality, but its 
strict English language requirements disquali- 
fy many Delia pupils from entry. 

Prior to the opening of as, the Seaker 
Chan International School (sas) was the 
most recently established Canadian curricu- 
lum school. It is managed by the Chan 
Education Foundation, a major provider of 
private education in the territory. Formerly 
known as the Canadian Program Sham Shui 
Po, it was founded in 1988 and provided 
Ontario programs from grade 9 to 1 2oac. In 
1991 it began teaching grades 1-8 and 
changed its name to Seaker Chan 
International School. 

According to principal Larry Richardson, 
the primary program from grade 1 -5 was put 
on hold. He maintains that this change was in 
no way connected with the opening of the as 
and added, "Our two schools have different 
catchment areas - as is on Hong Kong Island 
while we are on the Kowloon side." Instead, 
the decision was due to plans to build a new 
school on the present site, construction of 
which will take place in 1992, with a comple- 
tion date within two years. Grades 6- 1 2 will 
be temporarily housed in one of the Chan 
Foundation's other schools. 

Schools, cont'd page 10 



UPDATE 9 



Schools, cont'd from page 9 



Concern Over Rights to Privacy in Hong Kong 



This past year, the Seaker Chan 
International School had 1 70 pupils of whom 
90% were ethnic Chinese. Eighty per cent of 
these were local Chinese while 20% were 
returned Hong Kong Canadians. Tuition fees 
are hk23,000 (cdn$3500) for grades 7 and 
below, and hk$29.000 (cdn$4500) for grades 
8 and above. There is no English language 
entry requirement. 

After completion of the new school facili- 
ty, which Mr. Richardson judged would be "a 
showcase establishment," a vigorous market- 
ing plan for SOS will be initiated. There is no 
indication that returned and returning Hong 
Kong Canadians will be specifically targeted. 



John Grace, the Information 
Commissioner for Canada, visited Hong 
Kong in February. His work involves ensur- 
ing the right of individuals to get certain 
forms of information, and is closely linked to 
the separate function of ensuring the right of 
individuals to the protection of their privacy. 
Canada has pioneered legislation in both 
these fields, in the federal and the provincial 
areas of jurisdiction. 

Freedom of information legislation allows 
people to obtain information from govern- 
ment and other public sources which is of 
direct significance to them. Hong Kong has 
no Freedom of Information Act. and the gov- 
ernment has no plans to introduce one. Mr. 
Grace's visit came, ironically, just before an 
important legal judgment in Hong Kong, in 
which the Canadian Freedom of Information 
Act was used to provide evidence for the 
prosecution. Drs. Linda Koo and John Ho, 
cancer researchers at the University of Hong 
Kong, won their case against Dr. Lam Tai- 
hing, who was found guilty of plagiarising 



their research. The judgment was based, in 
part, on documents of Dr. Lam's work 
obtained from Canada through the Freedom 
of Information Act. 

Concern over the need for privacy in 
Hong Kong is growing. Part of the concern 
stems from the great amount of information 
about individuals stored in computer data 
bases and the misuses to which this informa- 
tion can be put by people who have access to 
it. Another part of the concern is political. As 
1 997 approaches, there is a fear that the prc 
practice of keeping dossiers on all individuals 
may be extended to Hong Kong. The dossier, 
which starts when a child enters junior middle 
school, goes with a person for the rest of 
his/her life. However, the individual has no 
access to his dossier, and there can be no cor- 
rection of erroneous or prejudicial informa- 
tion, prc authorities have already made it 
known that they keep dossiers on Hong Kong 
political activists and on anyone who is con- 
sidered less than sympathetic to the prc. 



Beijing Update 

by Jane Greaves 
Beijing 



Mainland press coverage of events con- 
cerning Hong Kong in the first three months 
of 1992 was largely issue-oriented, but two 
government messages emerged: 1 ) Beijing 
is making every effort to maintain produc- 
tivity and stability in Hong Kong which is 
in the best interests of both the Mainland 
and Hong Kong: and 2) individuals and 
business should begin now to tailor their 
actions to comply with the Basic Law in 
preparation for 1997, after which date only 
those in compliance will be guaranteed the 
Basic Law's rights and privileges for Hong 
Kong residents. 

In addition to the usual assortment of 
encouraging statistics and investment 
announcements concerning Hong Kong, the 
English language China Daily and the 
Chinese language People's Daily published 
articles on several important issues affecting 
Hong Kong. The announcement in January 
that Beijing was planning to appoint a group 
of prominent Hong Kong residents to serve 
as advisors to Beijing on the territory's 



affairs and the ensuing inaugural ceremony 
and speeches were thoroughly and enthusi- 
astically covered. The People's Daily 
reported that the advisors were appointed at 
the behest of many Hong Kong residents 
who felt that the existing channels of com- 
munication were not sufficient. The advi- 
sors are "unpaid, without organizational set- 
ups or offices" and will "in no way affect 
the administrative management powers of 
the British or Hong Kong governments dur- 
ing the transition, nor will they create a so- 
called second power centre." One of the key 
contributions of the advisors will be mainte- 
nance of a stable and prosperous Hong 
Kong. 

However, the effect on Hong Kong's sta- 
bility of appointing such a group without 
consulting the United Kingdom was not dis- 
cussed in the Mainland press. In contrast. 
Hong Kong's South China Morning Post 
published British Foreign Secretary 
Douglas Hurd's suggestion that Hong Kong 
might "get the jitters" if China did not con- 



sult with or inform the UK prior to such uni- 
lateral actions. 

The decision to "step up the publicity 
and promotion of the mini-constitution of 
the Hong Kong Special Administrative 
Region" was well covered by the Mainland 
press. The campaign resulted in many arti- 
cles urging people (Mainland and especially 
Hong Kong residents) to study the Basic 
Law to ensure Hong Kong's prosperity and 
stability in the second half of the transition- 
al period and beyond. Teaching materials 
for "such historical documents concerning 
Hong Kong's political future as the Sino- 
British joint declaration on the question of 
Hong Kong and the Basic Law" have been 
prepared for Hong Kong middle school stu- 
dents. Much of the coverage of and propa- 
ganda for the Basic Law uses a carrot-and- 
stick approach: if individuals respect and act 
in accordance with the Basic Law, they will 
be entitled to its rights and privileges. 



10 UPDATE 



The 22nd session of the Sino-British 
Joint Liaison Group (JLG) in Hong Kong, 
from March 24 to 26, received minimal 
press. The only article listed the issues cov- 
ered and reported a fruitful exchange of 
opinions, but did not discuss areas of con- 
tention between the two sides. This single, 
brief report is in keeping with recent cover- 
age of Sino-British negotiations over Hong 
Kong. Qian Qichen's March visit to 
London, during which he handed over 
China's articles of accession of the Nuclear 
Non-Proliferation Treaty, was fully cov- 
ered, but his talk with John Major over 
Hong Kong was dealt with in a few lines. 

The American bill setting out us policy 
on Hong Kong received a sharp, terse, and 
unsurprising response: China firmly 
opposed any attempt at "internationalizing" 
the Hong Kong issue. A Chinese Foreign 
Ministry spokesman's comment that "the 
Hong Kong question is a matter between 
China and the United Kingdom before July 
1 , 1997, and an internal affair of China after 
that date." appeared in both Chinese and 
English papers. 

Reporting on the recent session of the 
National People's Congress made only brief 
mention of Hong Kong: a six line report on 
a small group discussion of Hong Kong and 
Macao ("Delegates from Hong Kong and 
Macao can be very Useful"); and an article 
that the proceedings of the npc were being 
reported in a timely fashion in the Hong 
Kong press. Evidently, the Hong Kong 
issue is resolved in the eyes of the Beijing 
leadership and merits no further discussion 
by the ncp. 

The one important issue that was not 
mentioned at all in the Mainland press was 
the Hong Kong budget and the negotiations 
in the territory's Legislative Council to get 
it passed. Lu Ping. Director of the State 
Council's Hong Kong and Macao Affairs 
Office, criticized the budget as he felt it 
deviated from the financial principles of the 
Basic Law — keeping government expendi- 
tures within the limits of revenue rather 
than increasing revenue to meet expendi- 
tures, as Financial Secretary Hamish 
Macleod's budget proposes. However, Lu 
Ping's comments went unreported in China. 



Hong Kong, Canada and 
Foreign Investment Protection 



Foreign investment is becoming an 
increasingly important factor in world trade 
flows and. thus, in Canada's commercial 
and financial relations with other countries. 
Because of this fact and because foreign 
investment can be seen as an indicator of 
confidence in an economy, foreign invest- 
ment protection has become a more signifi- 
cant issue in Canada's relations with Hong 
Kong, to the point that discussions have 
taken place on a foreign investment protec- 
tion agreement. 

There are many advantages to establish- 
ing agreements on foreign investment pro- 
tection between countries with significant 
economic ties. While the details vary with 
each accord, foreign investment protection 
agreements provide a legal framework for 
protection of investment and, in case of 
expropriation or other developments, pro- 
vide for international arbitration to settle 
disputes arising from such actions. Foreign 
investment protection agreements can also 
establish compensation in the case of losses 




This is a view of Hong Kong's infamous 
Walled City which is now being torn 
down. For a recent report on the demoli- 
tion of this historic area (la Cite des 
Ombres), see the article, "Requiem pour 
une cite maudite," by Luc Chartrand in 
Actualites (vol. 17, 15 Juin 1992: 11-12). 



arising from changes in policy, natural dis- 
asters, or other developments. Such com- 
pensation is determined on the basis of 
Favoured Nation status with respect to pro- 
tection of investment, so that terms are no 
less favourable than those provided to each 
country's own investors. Of course, the 
details vary with each foreign investment 
protection agreement. 

Given the nature of these agreements, 
they represent a mutual vote of confidence 
in the economy and stability of the signato- 
ries. This is particularly important for Hong 
Kong. Foreign investment agreements, par- 
ticularly with major investor countries, rep- 
resent a vote of confidence in the territory's 
future after it becomes a Special 
Administrative Region of China in 1997. 
Such agreements indicate other countries 
have faith that Hong Kong's role as a finan- 
cial centre will continue, that it will pre- 
serve a capitalist, market-based economic 
climate which has been its source of wealth, 
and that political changes will not adversely 
affect its investment climate. As trade and 
investment become increasingly linked, 
such agreements also reflect confidence in 
Hong Kong as a major Asian trading part- 
ner in itself and as a entrepot for trade with 
China. 

As significant trading partners. Canada 
and Hong Kong are both interested in for- 
eign investment protection and are now in 
the midst of negotiating such an agreement. 
Initial consultations have taken place, and 
both sides are reviewing draft agreements in 
preparation for further discussions. When 
an agreement is reached, it will not only 
demonstrate Canada's interest in continued 
promotion of investment from Hong Kong, 
as well as Hong Kong's confidence in the 
Canadian economy, but also it will be seen 
as an indication that Canada has confidence 
in the economic and political stability of 
Hong Kong after 1997. Thus, such an 
agreement is by extension a vote of confi- 
dence that the People's Republic of China 
will live up to its commitment to retain 
Hong Kong's present economic environ- 
ment in order to preserve its role as a major 
financial and trading centre in Asia, as well 
as a motor for the growth and moderniza- 
tion of the prc's own economy. 



UPDATE 11 



Premier Bob Rae's 
Visit to Hong Kong 

Premier Rae visited Japan and Hong 
Kong in May to strengthen the existing 
ties between Ontario and Asia. In Hong 
Kong he met the governor. Lord Wilson, 
industrialists K.S. Li (Li Ka Shing), ES. 
Cheng and James Ting, and members of 
the Canadian business community. He 
also met James So, Secretary for 
Recreation and Culture, who is responsi- 
ble for Festival Hong Kong in Canada. 
Addressing the Ontario Legislature after 
his return he said: 

This visit reinforced my belief that 
Ontario must strengthen its links to 
these important economic partners. 
It may sound like a cliche, but the 
energy and vibrancy of the people 
and the economies hit you as soon 
as you step off the plane at Hong 
Kong's Kaitak airport, or the 
moment you reach Tokyo. We share 
a rich history; thanks to decisions 
made by hundreds of thousands of 
individuals, Asia and the Pacific 
have become a pan of Ontario's 
heritage. People from all parts of 
Asia have chosen to make Ontario 
their home; and although they have 
become Canadians, they have not 
abandoned their languages, cultural 
roots or contacts. By phone, fax. jet 
and video cassette, Ontario is now 
profoundly linked with Asia. 

Premier Rae also stressed the impor- 
tance for Ontario of thinking internation- 
ally, for training young people in Asian 
languages and then making good use of 
them in business. He concluded: 

We must move from simply being 
exporters to promoting a truly inter- 
national perspective. Our education, 
training, our investment and indus- 
trial strategies, our communications 
systems and language programmes, 
our marketing skills, all can foster 
this perspective. This is something 
well known in Japan and Hong 
Kong, and in many other countries. 
Our businesses and our young peo- 
ple must begin to see themselves and 
their future in this light. This is 
Ontario's challenge. 



Municipality Takes Proactive Approach to 
Economic Development 



The following is a statement by 
Mayor Joyce Trimmer written for the 
Canada and Hong Kong Update, 
after her return from a month's trip to 
Asia this spring. In order to promote 
business interests for the City of 
Scarborough, the Mayor visited sev- 
eral cities in China, Hong Kong, 
Taiwan and Japan between March 
20 and April 16. Her trip included a 
week in Hong Kong from March 29 
to April 5. 

As Mayor of Scarborough, one of 
Canada's largest cities, I believe it is very 
important to play a dynamic role in encour- 
aging business opportunities from Hong 
Kong. The role of municipal government in 
many areas, including economic develop- 
ment, is a proactive one. With the increas- 
ing pressure on municipalities to undertake 
greater responsibilities, and with that a 
greater financial burden, it is important to 
target and effectively attract new business 
investment to stimulate economic develop- 
ment. 

In an effort to pursue economic develop- 
ment goals, as well as to better understand 
Scarborough's growing Hong Kong popula- 
tion (the city has one of the largest Hong 
Kong populations in Canada). I undertook a 
business trip to the territory last April. This 
was my second visit to Hong Kong, and in 
many ways was an opportunity to follow up 
with the many business contacts made pre- 
viously. The rationale for selecting Hong 
Kong as a target for business interests rests 
on its "fit" with Scarborough. Given the 
population ties and other similarities, 
Scarborough is well positioned as a destina- 
tion for Hong Kong business investment. 

My major task was to communicate the 
benefits of establishing a business in 
Scarborough and to promote our diverse 
business community. Since our existing 
commercial community is of vital impor- 
tance, my trip was also a chance to articu- 
late its needs in order to foster possible joint 
ventures and export opportunities. 

A full week was spent in Hong Kong 
meeting with government officials, business 
associations and entrepreneurs. In the devel- 
opment of my itinerary, I was quite pleased 
by the level of interest shown by many busi- 



nesses in Scarborough. In the course of this 
trip, I also had the opportunity to visit and 
meet with government and business offi- 
cials in Beijing, Tianjin, Shanghai, Wuxi, 
Taipei, and Sagamihara. Japan. 

Upon arriving in Hong Kong. I met with 
members of the hk government, and during 
our discussions I had the opportunity to 
expand on Scarborough's participation in 
the upcoming Festival Hong Kong 92. Our 
city will host a major event Sept. 29, the 
Scarborough Lantern Festival, based on tra- 
ditional lantern festivals in Hong Kong. 

Following the meetings with government 
dignitaries, I met many business representa- 
tives, all of whom welcomed me warmly 
and showed great interest in Scarborough. I 
held many fruitful meetings with the 
Chinese Manufacturers Association, the 
Hong Kong Trade Development Council, 
several high profile developers and major 
Hong Kong investors in Canada, and mem- 
bers of both the Canadian and Ontario 
Government trade offices. I also conducted 
several well-attended business seminars, 
facilitated by the Ministry of Industry, 
Trade and Technology and Scarborough's 
Economic Development Department and 
opened a Hong Kong branch of a 
Scarborough real estate company. 

Results of Scarborough's business trip to 
Hong Kong include numerous commercial 
inquiries, visits by two business delegations, 
an enhanced relationship with residents 
originally from Hong Kong, and the estab- 
lishment of Scarborough as a viable loca- 
tion for investment from Hong Kong. 

In the local business arena, I am working 
to further the interests of our business com- 
munity by keeping it informed of the oppor- 
tunities in Hong Kong, via seminars and 
personal meetings. Municipalities must help 
their local commercial establishments sur- 
vive the current economic situation, by 
thinking and acting "globally." Hong Kong 
and Scarborough have much to gain from 
each other in our increasingly complex 
world economy. 



12 UPDATE 



New Brunswick Premier 
Visits Hong Kong 



Understanding Consumers Moving 
between Cultures 



Frank McKenna, the premier of New 
Brunswick, visited Hong Kong from March 
7 to 11. The purpose of his visil was to pro- 
mote the potential for investment and for 
business opportunities in New Brunswick. 
Travelling with the premier was a group of 
New Brunswick business people. The pre- 
mier visited the site of the new airport at 
Chek Lap Kok on Lantau Island and went 
to the Delia School in Takko Shing. a 
school which uses the New Brunswick cur- 
riculum. 

In a speech to the Canadian Chamber of 
Commerce in Hong Kong, Premier 
McKenna stressed that New Brunswick is 
anxious to attract investment from abroad. 
The province has the advantage of a loca- 
tion close to the usa. for trade opportunities 
under the Free Trade Agreement, and an 
export-oriented economy. Two-thirds of all 
production is exported. New Brunswick has 
the fastest growing economy in Atlantic 
Canada, based on its abundance of natural 
resources. Future development will be 
helped by a strong bilingual education sys- 
tem and a skilled work force. It has a base 
of productive old industries, in natural 
resources and foodstuffs, and some success- 
ful new industries. 

The premier foresaw possible partner- 
ships with Hong Kong in forest products. 
There has been some Hong Kong invest- 
ment in the province already, for example 
Atlantic Canada Textiles and whk Woven 
Labels. More will be welcomed. There are 
200 students from Hong Kong at the 
University of New Brunswick, whose 
largest alumni association outside New 
Brunswick, with one hundred members, is 
in Hona Kona. 



Correction 

In the last Update Issue we erroneously 
reported in the article on Pre-migration 
Programs in Hong Kong that the Meet 
with Success programme had received 
financial support from the Canadian gov- 
ernment, provincial government offices in 
Hong Kong, and other local associations 
such as the Canadian Chamber of 
Commerce. According to Larry Mills, 
President of Meet with Success, the pro- 
gramme is funded only through private 
sources which include "donations provided 
by the participants of these weekly semi- 
nars and from other private donations." 

We regret the error. 



Professors David K. Tse {University of 
British Columbia, Faculty of Commerce 
and Business Administration) and Wei-Na 
Lee (University of Texas. Austin, Dept. of 
Advertising) have recently conducted a 
study of consumer habits of Hong Kong 
immigrants In Canada. Their research 
project focused on how Hong Kong immi- 
grants have changed the products they 
own. whether they have altered their 
shopping behaviour, and how they partici- 
pate in Chinese and/or Canadian cultural 
activities. The following is a summary by 
David Tse of the objectives and major find- 
ings of their research. 

Objectives: 

When Hong Kong consumers move to 
Canada, will they purchase the same set of 
products that they used to own? Will they 
retain the same shopping habits and buy from 
similar outlets with the same frequency? Will 
they practice Chinese and/or Canadian cultur- 
al activities? These are some of the questions 
examined in the Lee and Tse study on how 
Hong Kong immigrants changed their 
behaviour when they came to Canada. 
Answers to these questions have both man- 
agerial and public policy implications. For 
example, should companies adopt similar 
marketing strategies to these immigrants? If 
they change at all. in what areas would Hong 
Kong immigrants become like Anglo- 
Canadians, or do they always remain as 
Chinese from Hong Kong. 

Design: 

The study surveyed four groups of con- 
sumers (total of 938), including Anglo- 
Canadians, recent Hong Kong immigrants, 
former Hong Kong immigrants (who immi- 
grated before 1984), and Hong Kong resi- 
dents. They were questioned on their product 
ownership, retail shopping behaviour, and a 
set of value-related activities. 

Major Findings: 

It was found that the immigrants reclassi- 
fied the products they own. As expected, 
recent Hong Kong migrants had lower family 
income than their Canadian counterparts. The 
former assumed conservative financial plans. 
Though they bought a comparable percentage 
of private cars, microwave ovens, and single 



family houses, they bought fewer air-condi- 
tioners and condominiums compared with 
Hong Kong residents and Anglo-Canadians. 
New immigrants shopped more frequently in 
supermarkets, but they complemented their 
grocery shopping in Chinatown and Chinese 
stores. They did not like to buy pre-owned 
products, such as from flea markets and 
garage sales. For professional services, they 
went to Chinese physicians and Chinese 
accountants. They accepted value free activi- 
ties readily and tried to maintain Chinese cul- 
tural activities. At the same time, they also 
celebrated Canada Day and participated in 
community centre events. With regard to mar- 
riage, the newer immigrants did not readily 
accept non-Chinese spouses for their children. 

Former Hong Kong immigrants, who had 
stayed more than seven years in Canada, 
earned a comparable Anglo-Canadian family 
income. As a result they classified products 
differently and owned more household appli- 
ances (private cars, microwaves, single family 
homes) and more recreational products 
(VCRs, BBQs, and multiple TVs) than 
Anglo-Canadians. Their shopping behaviour 
was closer to Anglo-Canadians, representing 
a 'melting pot' phenomenon, though they 
complemented their grocery purchases at 
Chinese stores and at Chinatown businesses. 
Like recent immigrants, they shopped less 
often at flea markets and garage sales. With 
better ability in spoken English, they went less 
often to Chinese physicians or accountants 
compared to recent immigrants. In terms of 
culturally relevant activities, they seemed to 
be more bi-cultural. maintaining their Chinese 
traditions (celebrating Chinese New Year) 
along with Canadian traditions (Canada Day). 
However, they were more willing to accept 
interracial marriage for their children. 

In general, it was found that the immi- 
grants reconceptualized the products they 
own, changed their retail shoppping behavior, 
and selectively adapted some value related 
activities. The findings suggest that environ- 
mental influences and cultural relevancy are 
important to the immigrants' adaptation to the 
norms of their new home. 

For further information about this study, 
please write to Prof. David K. Tse, Faculty 
of Commerce and Business 
Administration, ubc, Vancouver, B.C., 
Canada V6T 1Z2 or phone (604) 822-8364. 



UPDATE 13 



Tiananmen Memorial 



On May 3 1 , a memorial meeting was 
held at Toronto City Hall to commemorate 
the third anniversary of the Peking 
Massacre. The meeting was addressed by 
the Nobel Laureate, Professor John Polanyi. 
Messages of support were read from Jean 
Chretien, leader of the Liberal Party, and 
Audrey McLachlan, leader of the New 
Democratic Party. After the meeting, about 
one thousand people marched to the 
University of Toronto for the dedication of a 
bronze memorial to the students and citizens 
of China who died on 4 June 1989. (The 
plaque beneath the bronze was stolen on the 
night of June 3.) The memorial was 
unveiled by Gordon Cressy, Vice President, 
University of Toronto, Dick Chan, Chair of 
the Toronto Association for Democracy in 
China, and Farrah Jinha, President of the 
University of Toronto Students' 
Administrative Council. Peter Guo. imme- 
diate past president of the Students' 
Administrative Council, and Zhang 
Xiangmin, Vice-President of the Federation 
of Chinese Students and Scholars in 
Canada, also spoke. 

A statue of the Goddess of Democracy 
was also presented at the ceremony at City 
Hall. A truck carrying the statue led the 
rally to U. of T. for the dedication and then 
to the Chinese consulate where the statue 
was assembled. The 25 foot replica, made 
of wire mesh, wood and canvas, is a collec- 




Goddess of Democracy 
Student Centre, York University 

rive work by the Toronto Design for 
Democracy Group, consisting of young 
Canadian Chinese artists, students and 
designers. The statue has been loaned for 
three years to York University where it was 
erected on June 4 in the lobby of the new 
student centre. There are plans for the fourth 
anniversary memorial next year to gold leaf 
both the bronze wall sculpture at U. of T. 
and the Goddess of Democracy statue at 
York. 



The Chinese Consulate General in 
Toronto protested to the university presi- 
dents about both memorials, claiming that 
they were being mounted by "a small num- 
ber of hostile elements" whose aim was to 
"hurt the feelings of the Chinese people" 
and undermine Sino-Canadian friendship. 




Dick Chan, Farrah Jinha and John Polanyi 
at the unveiling of a Bronze Memorial at 
the University of Toronto 



Project Workshop on China-HK Relations 



by Bob Perrins 
Toronto 



The Canada and Hong Kong Project 
recently sponsored a workshop on China in 
Transition: Implications for Hong Kong. 
Sessions were held at York University and 
the University of Toronto on 11-12 June 
1992. Convened by Prof. Victor Falkenheim 
(U of T), the workshop focused on political 
and economic changes in China and their 
impact on Hong Kong. It also examined us 
and Canadian government policies towards 
Hong Kong. 

Four papers were presented: 1 ) The New 
China News Agency, by John Burns, 
Department of Political Science, University 
of Hong Kong; 2) Current Political 
Developments in China: Implications for 



Hong Kong, by Carol Lee Hamrin, East 
Asia Division, U.S. Department of State and 
Adjunct Prof, of Chinese History, School of 
Advanced International Studies. Johns 
Hopkins University; 3) Changing Patterns 
of Regional Administration in China: 
Implication for Hong Kong, by Victor 
Falkenheim, Department of Political 
Science, University of Toronto; and 4) 
Hong Kong and the Rise of 'Greater 
China 1 : Policy Issues, by David M. 
Lampton, President, National Committee on 
US-China Relations. The meetings conclud- 
ed with remarks by Donald Waterfall (North 
Asia Relations, External Affairs and 
International Trade Canada) and a round- 



table discussion (chaired by B. Michael 
Frolic) on policy implications for both 
Canada and the U.S. Among the more than 
thirty participants were representatives from 
Canadian and American government, busi- 
ness and private agencies, members of the 
Hong Kong Economic and Trade Office, 
reporters from The Financial Post and Sing 
Tao Newspapers, and a number of aca- 
demics and graduate students. 

Diana Lary, director of the Canada and 
Hong Kong Project, opened the workshop 
with brief remarks on the importance to 
Hong Kong of the ongoing changes and 
uncertainties within the People's Republic 
of China (prc). As 1997 approaches. Prof. 



14 UPDATE 



Lary believes, it is imperative to monitor 
and understand the domestic economic and 
political transformations within the prc and 
to analyze their impact on the people of 
Hong Kong. 

The papers focused on the interaction 
between the prc and Hong Kong. John 
Bums's paper presented a fascinating and 
detailed study of the workings of the prc's 
operational organ in Hong Kong - the New 
China News Agency (ncna). Stating that 
the PRC's overall goal is the smooth transfer 
of authority in Hong Kong as laid out in the 
Basic Law, Bums outlined the ncna's 
efforts to promote China's interests in the 
territory and strengthen Beijing's hand prior 
to 1997. Activities of the ncna include pro- 
paganda work, maintenance of close rela- 
tions with the leftist press, involvement in 
United Front work, the attempt to coordi- 
nate and control other leftist organizations 
including trade unions, and the effort to fos- 
ter the development of a pro-Beijing politi- 
cal force within Hong Kong. Bums con- 
cluded that the future of the territory will 
largely depend on the outcome of a struggle 
between the ncna and Hong Kong's articu- 
late and rising middle class. 

Carol Hamrin discussed the workings of 
the various political organs within the PRC 
that are involved in drafting and implement- 



ing policy related to Hong Kong. The high- 
est level of these organs is the Politburo's 
Standing Committee, the leadership core, 
which is responsible for drafting the general 
guidelines regarding China's vision of Hong 
Kong's future. The next level, or executive 
core, is the Hong Kong and Macao Working 
Committee which is responsible for policy 
coordination. Below this Committee is the 
Hong Kong and Macao Affairs Office of the 
State Council, the administrative core which 
formulates concrete policies and oversees 
general administrative functions. The lowest 
level discussed by Prof. Hamrin is the New 
China News Agency and its Working 
Committee, both of which are involved in 
policy implementation and intelligence 
research. It is the ncna's Working Commit- 
tee which may form the core of the control 
system over Hong Kong affairs after 1997. 
Victor Falkenheim's paper reviewed the 
growth of regional/provincial powers within 
China, the decentralization of control in the 
1980s, regional experiments like Special 
Economic Zones, and their implications for 
the Hong Kong Special Administrative 
Region (sar). Prof. Falkenheim proposed 
that perhaps the best way to view Hong 
Kong's future within the prc is to under- 
stand it in relation to the diverse and decen- 
tralized regional structures that have operat- 



ed with increasing flexibility in the reform 
period. After 1997 Hong Kong might serve 
as an arena within which China could gain 
experience in managing a more pluralistic 
system - experience potentially transferable 
to its 'domestic' centre-region relations. 

David Lampton's paper focused on Hong 
Kong in relation to the emergence of a 
regional, integrated economy linking Hong 
Kong, the Mainland and Taiwan, termed by 
some observers 'Greater China.' His com- 
ments presented a more optimistic view of 
Hong Kong's future and the modernizing 
influence of both Hong Kong and Taiwan 
on China. He also addressed the importance 
of the growth of 'Greater China' for the 
development of us policy. Finally, he 
stressed the importance of the private, rather 
than governmental, sector in maintaining 
confidence in Hong Kong and making it a 
"more important place to China." Lampton 
concluded that Hong Kong's economic 
strength, coupled with the present world- 
wide trend towards regional integration, 
means that Beijing is unlikely to strangle 
the goose from which it hopes to procure 
many golden eggs. 

Publication of these papers by the 
Project is expected in early 1993. 



Canada-Hong Kong Database 



by Bob Perrins 
Toronto 



The Canada and Hong Kong Project has 
been involved in compiling a bibliographic 
database for the past two years. This 
database contains information not only on 
recent monographs published about Hong 
Kong but. more importantly, on newspaper 
clippings and magazine articles which deal 
with Hong Kong and the territory's relations 
with Canada. Some of the more common 
categories of material are immigration, set- 
tlement, investment, business, and political 
developments within Hong Kong and the 
prc - the most prominent being the Port and 
Airport Development Strategy (pads). 



Several research assistants in Hong 
Kong, Beijing, Vancouver, Ottawa and 
Toronto monitor the print media in both 
Chinese and English and send monthly 
reports to the Project. The relevant biblio- 
graphic information is input into the 
database, and copies of many of the original 
sources are maintained on file. Researchers 
interested in specific aspects of Hong 
Kong's relations with Canada may request 
from the Project a bibliographic printout, 
including abstracts. Where sources are more 
difficult to obtain and copies exist on file, 
they are available upon request for a small 
xeroxing and mailing fee. 



Some of the media regularly monitored 
for the database include the Toronto and 
Vancouver editions of Sing Tao News- 
papers, the Vancouver Sun. Toronto Star. 
Globe and Mail. New York Times. Asiaweek. 
Far Eastern Economic Review. South China 
Morning Post. Hong Kong Standard, the 
London Times, and the Beijing editions of 
People's Daily and China Daily. 



UPDATE 15 



New Project Publications 



The Project announces the publication of the first monograph in our new Can 

Hong Kong Papers: Politics and Society in Hong Kong towards 1997, ejjj 

Burton. This book is a collection of the papers from our first Projec^ 

January 1991. Articles include "Under China's Shadow: Re 

Unionism Toward 1997" by Ming K. Chan; "Education i 

Beyond" by Bernard Hungkay Luk; "Crises and Jj| 

for Christian Organizations in Hong Kong" 

Refuge: Freedom of the Press Under 

cost of this publication is con$1 

publication is the first in 

Kong with China in 

University of 

"Chin 



ed by Charles 



workshop, held 5 



TOblitik of Hong Kong Labour 
long Kong Up to 1997 and 



nsformation: the Implications of 1997 



Thomas In-sing Leung; and "Uncertain 



te Hong Kong Bill of Rights" by Perry Keller. The 



'(plus additional charge for overseas airmail). Our second 



?Ijr Research Papers series, The Economic Integration of Hong 



w 1990s: The Impact on Hong Kong by Yun-Wing Sung (Chinese 



JTong Kong). This is a paper presented at the Vancouver workshop, 



J3nd its Hinterland," on January 17-18, 1992. Cost of the publication is cdn $7. Both 
lese publications can be directly ordered from the Canada and Hong Kong Project. 



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Past issues are available 'on request. 
Telephone: (416) 736-5784 Fax: (416) 736-5688 



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CANADA AND HONG KONG UPDATE 






Number 8 






LSpadi Rm. Ill •' 

Governor Patten's Policy Speech to Legco 



On7 October 1992, the 

Rl. Hon. Christopher Patten 
gave his maiden policy 

address at the opening of the 
legislative session outlining 
his agenda for the next five 
years before Hong Kong's 
return to Chinese sovereign- 
ty in 1997. In this key speech 
he emphasized that his first 
duty as Governor "must be 
to secure stability and pn >s - 
perity in a way that sustains 
Hong Kong's freedoms and 
way oj life." 

He was confident that Hong Kong "can 
achieve an annual rate of 5' i economic 
growth in real terms between now and 1997" 
because of the territoiy's "four unique ad- 
vantages:" rapid economic expansion which 
is transforming the whole of the region; the 
astonishing performance of southern China. 
to which Hong Kong makes a major contri- 
bution and which has created valuable trade 
and investment opportunities: traditional 
commitment to minimal government interfer- 
ence and maximum support for business 
expansion; and the exceptional qualties and 
enterprise of Hong Kong people. 




He unveiled the following 

pat kage of proposals to 
develop Hong Kong's repre- 
sentative institutions to the 
maximum extent within the 
terms of the Joint Declaration 
and the Basic Law. 

Political Development: 

"...the pace of democratization 
in Hong Kong is - we all 
know - necessarily con- 
strained. But it is constrained, 
not stopped dead in its tracks. . . standing still 
is not an available option. The Governments 
of the United Kingdom and China have 
agreed in the Joint Declaration that democra- 
cy should be carried forward with a 
Legislature constituted entirely by elections. 
The Basic Law provides for a steady increase 
in the number of those directly elected to the 
Legislature. It does not visualise stagnation. 
What is more, and this was doubtless recog- 
nised by those who drafted the Basic law. the 
community wants a greater measure of 
democracy. Whenever the community is 
asked, that is the answer it gives. 

Policy Speech, cont'd page 2 






' 



FALL 1992 



Reaction to Patten's 
Constitutional Proposals 

by Bernard Luk 
York University 

The Sino-British Joint Declaration on the 
Future of Hong Kong ( 1 984) provided for a 
Special Administrative Region (SAR) gov- 
ernment after 1997 which would be "firmly 
rooted" in Hong Kong, with an executive that 
would be "accountable"' to an elected legisla- 
ture. The government would enjoy a "high 
degree of autonomy" from Beijing in areas 
other than foreign affairs and defense. 

Since the ratification of the agreement, 
however, the Chinese government acted con- 
sistently to limit the growth of representative 
institutions in Hong Kong, and the British 
authorities acquiesced by accepting the idea 
that developments before 1997 had to "con- 
verge" with provisions of the Basic Law of 
the SAR. drafted by a Beijing-appointed 
committee. 

The Basic Law, promulgated in 1990 in 
the aftermath of the Tiananmen massacre, 
strongly reflects the concerns for political 
control of the Communist leadership in 
China, and the socio-economic conservatism 
Reaction, cont'd page 2 



IN THIS ISSUE: 

Governor Patten's Policy Speech to Legco 1 

Reaction to Patten's Constitutional Proposals 1 

Governor Patten Visits Canada 5 

Canada Celebrates Festival Hong Kong 92 5 

Universities Sian Joint Agreement 7 



Change in Canada and Hong Kong 7 

Legco Delegation Visits Canada 8 

Changing Patterns of Immigration H 

Life Style Changes of Immigrant Women 9 

Visa Students' Experiences in Canada 10 

Canadian Stories 1 1 

Dia^nii*, of Crime Asian Gangs in Canada 1 1 



Crime Wa\e m Hong Kong 1 1 

Hong Kong in the Mainland Press 12 

China-Hong Kong Legal Relations 13 

New Asia Pacific Centre 

Inaugurated in Montreal 15 

Montreal Documentary on Hong Kong 15 

New Project Publications 16 



per 

F1029.5 
H6 C36 



CANADA AND 


HONG KONG UPDATE 


Editors 


Diana Lary 




Bernard Luk 




Janet A. Rubinoff 


Illustration & 


IMS Creative 


Design 


Communications 


Contributors 


Jane Greaves 




Frederick Lee 




Perry Keller 




Shuki Mo 




Shum Kwok-cheung 




Wendy Tang 



Camilla and Hong Kong Update is 
published 3-4 times a year by the 
Canada and Hong Kong Project 
Joint Centre for Asia Pacific Studies, 
Suite 270, York Lanes, 
York University, 4700 Keele St.. 
North York, Ontario. 
CANADA M3J IP3 

Telephone: (416) 736-5784 

Fax:(416)736-5688 

Opinions expressed in this newsjournal 
are those of the author alone. 



CANADA AND HONG KONG PROJECT 



Co-Directors Diana Lary 
Bernard Luk 



Coordinator 



Janet A. Rubinoff 



idvisi " v Board David Bond 

Mary Catherine Boyd 
Denise Chong 
Maurice Copithome 
B. Michael Frolic 
John Higginbotham 
Graeme McDonald 
T.G. McGee 
Jules Nadeau 
William Saywell 
Wang Gungwu 



We want to thank the Donner Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 

This publication is free. 

Please call or write to us for past 

or future issues. 



Policy Speech, cont'd from page 1 

"Democracy is more than just a philosoph- 
ical ideal. It is, for instance, an essential ele- 
ment in the pursuit of economic progress.... 
Without the rule of law buttressed by demo- 
cratic institutions, investors are left unprotect- 
ed. Without an independent judiciary enforc- 
ing laws democratically enacted, businesses 
will be vulnerable to arbitrary political deci- 
sions taken on a whim - a sure recipe for a 
collapse in confidence and a powerful deter- 
rent to investors from overseas." 

ExCo-LegCo Relationship: "In tackling 
constitutional development, there are some 
things we can change immediately in order to 
strengthen our representative institutions. 
Other improvements are longer term and 
relate principally to the 1995 elections 

"My intention is to insure that we have vig- 
orous and effective executive-led Government 
that is properly accountable to this Legislative 
Council. I believe that at the present stage of 
our political development, there is a danger of 
confusion and muddle in their roles which will 
both undermine the competence of the 
Executive and inhibit the effective develop- 
ment of the Legislature as an independent 
check on Government.. ..As the Joint 
Declaration and the Basic Law both make 
plain, it is the Legislature which is the main 
constitutional element that must be developed. 
That is, therefore, my major concern." 



ExCo: "I have concluded that. ..there 
should not be any overlapping membership 
between the Executive and Legislative 
Councils. I intend. ...to separate the non-offi- 
cial membership of the two bodies. This 
should allow both Councils to play their 
proper roles. In future within this Council, 
political parties and groups will be free to 
develop their programmes and platforms, 
without the constraints that membership of 
the Executive Council must impose.... 

"I intend the new Executive Council to be 
a non-party political body to which I can look 
for sound, impartial advice on the wide range 
of issues that come before the Adminis- 
tration. I am, therefore, appointing to ExCo 
independent members of the community, dis- 
tinguished in their own walks of life, who 
can give me advice without the conflicting 
loyalties of active day-to-day political 
involvement. There will also be a number of 
senior government officials on the Council." 

LegCo: "Separating the non-government 
membership of the two Councils implies that 
LegCo must be left free to run its own affairs 
and, in the process, to develop further its rela- 
tionship with the Government.... I wish to 
hand over as soon as possible the responsibil- 
ities of presiding over this Council to a 
President elected by you from among your 
own members.... 



Reaction, cont'd from page 1 

of their allies in Hong Kong, the capitalist 
elite. It adheres to the wording of the Joint 
Declaration but interpreted away much of its 
spirit. Il prescribes an executive-dominated 
government with a chief executive appointed 
by Beijing. The post- 1997 chief executive 
will have to render an annual "account" to a 
legislature which will have only one-third of 
its members returned by popular elections 
and two-thirds elected by small elite con- 
stituencies or committees of Beijing- 
appointees. These provisions were imposed 
by Beijing despite clear indications that a 
majority of people in Hong Kong favoured a 
higher degree of democracy in their political 
system. 

Governor Christopher Patten's constitu- 
tional proposals [see Policy Speech, p. 1 -4] 
have turned the table on Beijing. They adhere 
to the wording of the Basic Law, but fill in 



the many grey areas in that document (pre- 
sumably left by Beijing for interpretation by 
itself towards or after 1 997). by introducing 
mechanisms and provisions intended to bring 
the make-up of the Legislative Council some- 
what closer to the spirit of the Joint 
Declaration. These proposals were warmly 
welcomed by people in Hong Kong, as indi- 
cated in a number of opinion polls, as well as 
in town-meeting style gatherings and radio 
phone-in programmes in which Patten 
explained his proposals to the public. 

Beijing's reaction has been predictably 
negative and vehement. Patten was given a 
cold, and at times vituperative, reception 
when he visited Beijing from 20-22 October, 
after his policy address on 7 October. Lu 
Ping, director of the Hong Kong and Macau 
Office of the State Council, publicly demand- 
ed that the proposals be withdrawn, or else 



2 UPDATE 



"We are read) to work actively with 
Members in developing financial and man- 
agerial autonomy in organising \our own 
administration and support facilities. 

"We need to develop the relationship 
between this Council and the Gov eminent so 
as to ensure that public business. ..is conduct- 
ed efficiently. I propose that a Govemment- 
LegCo Committee should be established 
where the Administration can discuss with 
members of this Council the handling of the 
Administration's legislative and financial pro- 
grammes... ." 

1995 Elections: "The reforms I have out- 
lined will set the stage for the changes which 
are needed for the 1995 elections. I know that 
many people regard the key issue as being the 
number of directly -elected seats. On present 
plans, this will rise from 18 to 20 in 1995, 
and will increase at subsequent elections with 
the ultimate aim of achieving a Council com- 
posed entirely of directly-elected Members. 
For some time, it has been argued that we 
should seek to quicken the pace of this devel- 
opment, and the British Government has 
pledged to pursue this w ith the Chinese 
Government.... The Chinese position is that 
such a move would be incompatible w ith the 
Basic Law and they have said that the Basic 
Law cannot be changed before 1997.... 

"But this is not the only way of building 
up democracy in Hong Kong. 1 am keen that 



we should explore in parallel how to develop 
our representative institutions to the maxi- 
mum extent within the terms of the Joint 
Declaration and the Basic Law.... 

"i want to emphasise that we have 
embarked upon these discussions, begun by 
the Foreign Secretary, in good faith and with 
a v iew to demonstrating to our Chinese col- 
leagues the benefits which a more representa- 
tive system will bring to Hong Kong....[T]he 
proposals I am putting forward.. .will require 
serious discussion with Peking.... What I will 
therefore set out. ..is the broad shape of the 
understanding which I hope we can achieve 
both within the community and w ith the 
Chinese Government." 

Lower Voting Age: "First, as the Council 
has itself recommended. I wish to see the vot- 
ing age reduced from 21 to 18. Eighteen is 
regarded in China and in Britain, and in coun- 
tries right across the world, as a sensible vot- 
ing age...." 

Single Vote, Single Seat: "Turning next 
to the voting system for geographical con- 
stituencies. I believe this should aim to be 
clear and equitable and to command the con- 
fidence of voters. The 1991 system of double 
member constituencies has been criticised.... 
[T]he best option in my view is to give each 
elector a single vote for a single directly 
elected representative in a single seat con- 
stituency." 



Functional Constituency Revisions: 

"Third, we need to.. ..deal with some of the 
criticisms that have been levelled at the exist- 
ing functional constituencies by giving them 
a broader electorate and. therefore, a broader 
base nt support. ...|T|he whole system. ..will 
gain inestimably in credibility of we can 
show that every working member of the com- 
munity has a second vote to represent his or 
her interests at the place of work. 

"So tar as the present functional con- 
stituencies are concerned. I propose that all 
forms of corporate voting should be replaced 
by individual voters 

"[T]hese measures would expand the fran- 
chise in the functional constituencies con- 
cerned by more than five times.... The sim- 
plest and fairest approach for the nine new 
constituencies would be to define them so 
that they include the entire working popula- 
tion.. ..[These new constituencies would 
include primary production, pow er and con- 
struction: textiles and garments: manufactur- 
ing: import and export; wholesale and retail; 
hotels and catering; transport and communi- 
cation; financing, insurance, real estate and 
business services; and community, social and 
personal services.] 

"Such a step would have two main effects. 
First, it would give every single worker in 
Hong Kong the opportunity to elect to the 
Legislative Council a Member to represent 

Policy Speech, cont'd page 4 



Beijing would take unilateral drastic actions 
with regard to both the political system and 
the proposed airport before and after 1997. 
Lu also alleged that the Chinese and British 
governments had agreed in writing in 1990 to 
preclude the kind of development now pro- 
posed by Patten. Diplomatic correspondence 
dating from 1990. published by the Hong 
Kong government in response to Lu's allega- 
tions, however, does not substantiate Lu's 
point although it does suggest a consensus to 
restrict democracy. 

In spite of the continued outpouring of 
attacks against Patten's proposals and against 
his person by Beijing officials and pro- 
Beijing politicians and newspapers in Hong 
Kong, support for the governor remains high 
among Hong Kong people. Opinion polls 
conducted in Hong Kong after his visit to 
Beijing continue to show that a clear majority 



approve of his proposals and his perfor- 
mance, and insist that he carry on with them 
even at the risk of offending the Chinese gov- 
ernment. A telephone survey of inhabitants 
across the border even found that Patten 
enjoyed higher ratings there than their own 
provincial and municipal government leaders. 

Prior to delivering his policy address. 
Patten had flown to London to secure the 
blessing of Prime Minister John Major. The 
opposition parties in Britain have also given 
him their backing. By mid-November, the 
Canadian, Australian, and U.S. governments 
had publicly stated their support for greater 
democracy in Hong Kong. 

Canadian support was reiterated by Prime 
Minister Mulroney and External Affairs 
Minister Barbara McDougall when they met 
with Patten during his visit to Canada 11-14 
November [see Governor Patten Visits 



Canada, p. 5). At a news conference follow- 
ing an official luncheon in Toronto hosted by 
Mrs. McDougall. she affirmed. "We back the 
proposals Governor Patten has outlined in his 
policy speech of Oct. 7 and wish him every 
success in his negotiation with China." On 16 
November. U.S. State Department spokesman 
Mr. Boucher issued an official policy state- 
ment expressing support of Patten's proposals 
which "represent a constructive approach to 
the goal of the democratization in Hong 
Kong, a goal which the U.S. strongly sup- 
ports." This objective is "not inconsistent 
with the 1984 Sino-British Joint Declaration." 
The New York Times also editorialized 
[October 10 & 3 1 ] in favour of the general 
direction of the proposals. 

Meanwhile, Lu Ping on his part travelled 
to the U.S. from 5-11 November, at the invi- 
tation of the National Committee on U.S.- 

Reaction. cont'd page 4 



UPDATE 3 



Policy Speech, cont'd from page 3 

him or her at the workplace. Secondly, by 
encompassing all occupations, we will ensure 
broad representation in the Legislative 
Council. 

"These arrangements would result in the 
franchise of the 30 functional constituencies 
being extended to all eligible voters in our 
working population of 2.7 million. 

Stronger Local Administration: "I 
come, fourthly, to the extremely important 
role of District Boards and Municipal 
Councils.... I intend. ..that the [District Board] 
responsibilities, functions and budgets should 
be expanded in 1993 so as to give them 
greater responsibility for the issues which 
affect the residents of their particular dis- 
tricts.... We will. ..give District Boards full 
authority in managing funds for minor envi- 
ronmental improvement projects, local public 
works projects and community building 
activities.... 

"As from 1994, 1 propose that all [DB] 
members should be directly elected, with the 
exception of ex-officio members in the New 
Territories. We should similarly increase the 
number of directly elected seats on the two 
Municipal Councils... .we should abolish the 
appointed seats.... 

Overall Objectives: "In shaping this 
package, I have tried to build on existing 
institutions and to give them a broader base 



of support.... What I have tried to do with 
these proposals is to meet two objectives 
which I understand represent the views of the 
community - to extend democracy while 
working within the Basic Law. All the pro- 
posals I have outlined would, I believe, be 
compatible with the provisions of the Basic 
Law. What these arrangements should give 
us, therefore, is a 'through train' of democra- 
cy running on the tracks laid down by the 
Basic Law.... 

"I repeat once again our goal - 'one coun- 
try, two systems.' What does that mean in 
practice? It means a prosperous China, made 
more prosperous still by the contribution of a 
vigorous, tolerant and open Hong Kong. We 
should look towards the fifty years beyond 
1997. They will be even more successful than 
the fifty that went before. They will see our 
own system and our own way of life - which 
you made and of which all of us are part - sur- 
viving and flourishing because it works so well, 
because it embodies values we all hold dear. 
and because of the example of decency and 
success that it offers to the rest of humanity." 

In addition to these significant proposals 
mi constitutional development, the Governor 

also announced ambitious programs for 
improving services in social welfare, social 
security, education, health , public housing, 
environmental protection, and law and 



order. His specific plans included retraining 
programs for displaced workers in older 
industries; the improvement of school stan- 
dards with better trained teachers, smaller 
class sizes and whole-day schooling in new 
primary schools; improving welfare services 
such as an overhaul of the Social Security 
system and improvement of benefits, residen- 
tial care for the disabled, and special atten- 
tion to needs of the elderly. 

He announced increased spending plans 
for health and hospital services with the pri- 
ority on better patient care and shorter wait- 
ing periods for treatment, specialized health 
centres for the elderly, "well-woman" clinics 
for females over 45. and better hospital and 
out-patient care for the mentally ill. He 
promised a substantial increase in public 
housing and the rehousing of urban squat- 
ters on government land. His proposals for a 
cleaner environment included the closing of 
older urban landfills, better disposal of solid 
waste and toxic industrial waste, and a 
major program of capital works (HK$3 bil- 
lion) for the building of a new sewage treat- 
ment system. The Government also promised 
an increase of 800 police officers and the 
strengthening of cooperation with Chinese 
authorities to suppress cross-border crime. 
Finally, Governor Patten called for not only 
an increase in but a greater accountability of 
government in the provision of its services. 



Reaction, cont'd from page 3 

China Relations, and made use of the oppor- 
tunity to argue against the introduction of 
democracy in Hong Kong after one and a half 
centuries of colonial rule without democracy. 

Back in Hong Kong, the Business and 
Professional Federation, a lobby made up of 
certain members of the business elite, issued 
a statement in favour of "convergence" with 
the Basic Law and against the new constitu- 
tional proposals. Many of the most important 
segments of the business community, howev- 
er, refused to take part in this action, and the 
statement was quickly denounced by other 
business leaders as representative of only cer- 
tain interests. At the same time, a semi-offi- 
cial representative of the Taiwan government 
in Hong Kong remarked that if Beijing could 
not tolerate the Patten proposals, it certainly 
would find it even harder to accept, under 
Beijing's formula of "one country, two sys- 
tems" for national unification, the more 
democratic system existing in Taiwan. 



Within the Hong Kong community, some 
forty social, occupational, religious, human 
rights, and service groups began to organize 
public support for the proposals, through 
political advertisements, press conferences, 
public meetings, and demonstrations outside 
the New China News Agency. Their oppo- 
nents labelled the proposals as a colonialist 
plot which would ruin the stability and pros- 
perity of Hong Kong. 

In the midst of the political cacophony, the 
Hang Seng Index of the Hong Kong Stock 
Market continued to rise after Patten's policy 
address in early October. By mid-November, 
it had gained nearly 1000 points to reach his- 
toric heights at 6447. It dropped more than 
450 points in two days after Chinese Deputy 
Prime Minister Zhu Rongji made a statement 
in London ( 16 November) which the interna- 
tional press interpreted as a threat to abrogate 
the Joint Declaration. However, the Index sta- 
bilized in the 5800s when the Chinese 



Embassy in London issued clarifications that 
such a threat was never made. 

On 1 1 November, the Legislative Council 
voted 32 to 21 in favour of a motion to sup- 
port Patten's proposals in general principle. 
The vote took place after a heated marathon 
debate between most of the elected members 
on one side, and pro-Beijing and conservative 
business interests (appointees of previous 
governors) on the other side. So Patten enjoys 
both popular and representative backing in 
Hong Kong, as well as international moral 
support. He has appealed to Beijing and to the 
conservative Hong Kong business groups to 
make concrete counter-proposals, so that the 
Hong Kong public could decide in an open 
and rational process what kind of future gov- 
ernment it wants. 

No other proposals have yet appeared. 
However, there is no doubt that the drama 
will continue to unfold in the months to 
come. 



4 UPDATE 



Governor Patten Visits Canada 



The Governor of Hong Kong, the Rt. Hon. 
Christopher Patten. \ isited Canada from 11- 
14 November to mark the official closing ol 
Festival Hong Kong '92. His itinerary includ- 
ed a two-day visit to Vancouver and one daj 
each in Ottawa and Toronto. During his stay 
in Vancouver. 11-12 November. Mr. Patten 
met with the Lieutenant Governor of British 
Columbia, the Hon. David Lam. and Premier 
Michael Harcourt. On Remembrance Day 
(Nov. 1 1 ). Governor Patten laid a wreath at 
the cenotaph in Victory Square to pay tribute 
to Canadian soldiers who helped defend 
Hong Kong during World War II. Other 
Vancouver events included a gala dinner, tour 
of Chinatown, and a visit to the Dr. Sun Yat- 
sen Garden and the Chinese Cultural Centre. 
On the evening of 1 1 November at the Gala 
Benefit Dinner which closed the festival. 
Governor Patten spoke of the similarities and 
growing ties between Hong Kong and 
Canada. He concluded by referring to this 
special relationship of Hong Kong people to 
Canada and to the rest of the world: 

"Through the Festival, you have been able 
to experience the best that Hong Kong has to 
offer - the cream of Hong Kong*s talent in 
music, in the theatre, in film, in fashion, in 
food and in sport. In all these areas. Hong 
Kong today is notching up astonishing 
achievement - and exporting them to the 
world. 

"It is all these things - as much the 
attributes, like a free press, like freedom of 
speech, like freedom of worship, of a free 
society - that together add up to Hong 
Kong's 'way of life." A way of life spelt out 
in paragraph after paragraph of the Sino- 
British Joint Declaration.... 

"Implementing the Joint Declaration is. of 
course, a task for Britain and China. But it is 



good to know thai we do so with the goodv. ill 

of our friends in Canada. And that we do so 
with the friendship between our people in 
finer fettle today than it has ever been - a 
friendship made more intimate and less dis- 
tant by the advent of modern communica- 
tions. 

"... as I close this Festival it is not fanciful 
to speak of our having constructed something 
of a "Bridge across the Pacific" - a bridge 
between this great land and a rock in the 
South China Sea. a bridge of which our fore- 
bears who crossed the Pacific in their sailing 
ships would surely and rightly be proud." 

Mr. Patten met with Prime Minister Brian 
Mulroney in Ottawa on 13 November, after 
w hich the Governor presented the official gift 
from Hong Kong to the people of Canada: a 
traditional 1 2-metre dragon boat, specially 
made for this occasion. It has been donated to 
the National Museum of Civilization in Hull. 
The Hong Kong-Canada Business 
Association and Ottawa-Carleton Board of 
Trade hosted a luncheon, and Mr. Mulroney 
held a dinner for Mr. Patten the evening of 
the 13th. 

Governor Patten arrived in Toronto on 14 
November and met with the Secretary of 
State for External Affairs. Mrs. Barbara 
McDougall. She stressed Canada's support in 
principle of Patten's proposals for more 
democratic reforms in Hong Kong [see, 
excerpts from his Policy Speech, p. 1-4]. At a 
luncheon hosted by Mrs. McDougall and later 
press conference. Governor Patten reiterated 
his call for a "period of quiet and calm reflec- 
tion" on the proposals. "I very much hope we 
can move beyond the recent rhetorical phase 
of the debate and have a rather calm discus- 
sion about the political options for Hong 
Kone's future." 



He also stressed thai il was important tor 
Hong Kong people to stand up for then own 
system and values: "It's that way of life 
which is described in the Joint Declaration, 
the values ol an open and tolerant society 
whose values helped to make it more prosper- 
ous ami more stable. The way of hie which is 
described in such detail in the Joint 
Declaration comprises our system - one of 
the two systems in that historic concept, 'one 
country, two systems." We have by definition 
to stand up for our system. We have to stand 
up for it after 1997 and. of course. ...before 
1997 as well. ..if we won't stand up tor it 
now. what chance that people will stand up 
for it in the years ahead?" 

His visit concluded with an afternoon 
reception at the University of Toronto, hosted 
by President J. Robert Prichard and attended 
by academics, community leaders and Hong 
Kong students. Stressing the educational ties 
between Canadian and Hong Kong universi- 
ties. President Prichard was impressed b\ 
Patten's recent recommendation to increase 
research funding to tertiary institutions in 
Hong Kong by over 209c a year. Governor 
Patten concluded his remarks on the impor- 
tance of these educational connections with 
the statement that the test for the success or 
failure of his proposals for democratic 
reforms would be whether the life style and 
freedoms now existing in Hong Kong could 
be sufficiently guaranteed for the future. In 
particular, this success would be revealed by 
the choice of a large number of students 
presently studying in Canada to permanently 
return to Hone Kona. 



Canada Celebrates Festival Hong Kong 92 



The month-long Festival Hong Kong 92 

was celebrated with numerous events in five 
cities across Canada during September- 
October. Opening ceremonies took place on 
25 Sept. in Montreal. 26 Sept. in Toronto. 1 
Oct. in Calgary, 6 Oct. in Ottawa, and 10 Oct. 
in Vancouver. A colourful 500-foot dragon 
parade launched the festival in downtown 



by Janet Rubinoff 

Toronto 

Toronto, and the celebration concluded in 
Vancouver on 11-12 November with the visit 
of Hong Kong Governor Christopher Patten 
[see above]. 

Each of the five participating cities - 
Toronto, Ottawa/Hull, Montreal, Calgary and 
Vancouver - sponsored numerous exhibits, 
special performances, local cultural and 



social events, sports and food demonstrations, 
as well as business and educational seminars, 
to emphasize the close relationship betw een 
Hong Kong and Canada. More than 50 events 
were planned across Canada and over 400 
performers took part. Initiated by the 
Government of Hong Kong, it was their 

Festival, cont'd page 6 



UPDATE 5 



Festival, cont'd from page 5 

largest overseas promotion. It was held in 
reciprocation of Festival Canada in Hong 
Kong, which was sponsored by the Canadian 
Government in June 1991. 

As part of the promotion several groups 
were brought from Hong Kong to perform in 
different cities across Canada. These included 
the Hong Kong Ballet which performed in 
Calgary (Oct. 10-11) and Vancouver (Oct. 14- 
15); the Hong Kong Dance Company, 
which appeared in Toronto (Oct. 1-2); the 
Chung Ying Theatre Company which 
toured Toronto (Oct. 9-10), Montreal (Oct. 
13-14), and Vancouver (Oct. 17-18); the City 
Contemporary Dance Company coming to 
Ottawa (Oct. 14) and Montreal (Oct. 17-18); 
the Hong Kong Academy for the 
Performing Arts performing in Calgary 
(Oct. 13-14) and Ottawa (Oct. 19); the Hong 
Kong Chinese Orchestra playing in Toronto 
(Oct. 7-8) and Vancouver (Oct. 1 1 - 1 2); the 
Hong Kong Youth Chinese Music 
Instrumental Ensemble (Sept. 28-29) and 
the Hong Kong Festival Children's Chorus 
(numerous occasions, Sept. 26-Oct.2), which 
both performed in Toronto. Hong Kong Film 
Festivals, featuring a number of Cantonese 
films and a special tribute to director Sylvia 
Chang, were held in four places - Vancouver, 
Toronto, Montreal and Ottawa. 

A variety of special exhibits, demonstra- 
tions and store promotions were also held 
in each city. Food and cooking demonstra- 
tions were presented in four centres - 
Vancouver (Oct. 3-4 & 17-18), Toronto (Sept. 
25-Oct 5 & Oct. 3-4), Ottawa (Oct. 8-19), 
and Montreal (Oct. 7-11). A number of local 
restaurants in each of these cities also partici- 
pated in a "dine around festival of flavours." 
Art exhibitions featuring Chinese theatre as 
well as crafts and contemporary works were 
held in Vancouver (Canadian Craft Museum. 
Vancouver Museum, the UBC Museum of 
Anthropology, and the Chinese Cultural 
Centre) and Toronto (ROM). The Chinese 
coins & currencies exhibit of Hang Seng 



Bank toured Toronto, Ottawa and Vancouver. 
Sports demonstrations, such as table tennis, 
badminton, and martial arts, were featured in 
all five locations. Photography exhibits 
focused on scenes from local Chinatowns and 
Chinese communities in Canada as well as 
Hong Kong. 

Business seminars and trade shows 
were a key component of festival events in 
each city. Several of these meetings, held on 
Oct. 2 in Calgary and Oct. 19 in Ottawa, were 
organized by local chapters of the Hong 
Kong-Canada Business Association and 
Canadian Chamber of Commerce. The Sept. 
30 seminar in Montreal was also co-spon- 
sored by the Asia Pacific Foundation of 
Canada (APF). 

In Toronto (Oct. 1 ) and Vancouver (Oct. 9 
& 21) business conferences were organized 
by the Hong Kong Trade Development 
Council in conjunction with other local orga- 
nizations, such as the APF. The international 
business conference in Toronto featured six 
distinguished government and business 
speakers from Hong Kong, including the Rt. 
Hon. Baroness Lydia Dunn, senior member 
of Exco. A Cantonese Business Seminar was 
also held on Oct. 2 in Toronto. Barrie 
Wiggham, the HK Government "s Acting 
Chief Secretary, was the keynote speaker at 
the trade seminar in Vancouver. Hong Kong 
business seminars were also held in Victoria 
(Oct. 22) and Kelowna, B.C. (Oct. 23). A 
workshop on the "Hong Kong Airport Core 
Programme" was held in Vancouver Oct. 2 1 . 

Special education programmes or con- 
ferences on Hong Kong, sponsored by sev- 
eral local universities, were held in four 
cities. The University of Toronto and York 
University co-sponsored a week long 
"Societies in Transition Conference," Sept. 
26-Oct.3. It included public lectures, several 
keynote addresses, and seven workshops 
(Biomedical Research, Medicine and Hong 
Kong on Sept. 26, Education Connections. 
Sept. 28-29. Societal Issues (Sept. 30-Oct. 1 ). 



Political Transitions (Oct. 1 ), Business Law 
(Oct. 1 ), Legal Issues (Oct. 2), and Hong 
Kong Visa Students in Canada (Oct. 3). 
Highlights of the conference also included an 
Exhibition on Developments in Higher 
Education in Hong Kong (Sept. 29-30); the 
signing ceremony of an exchange agreement 
between the University of Toronto, Chinese 
University of Hong Kong, and University of 
Hong Kong (Sept. 28) [see "Heads of Three 
Universities Sign Joint Agreement," p. 7]; 
and a wrap up panel discussion on Oct. 2 at 
which the Commissioner for Canada in Hong 
Kong, John Higginbotham. was a keynote 
speaker [see "Change in Canada and Hong 
Kong," p. 7|. 

There were also a number of events 
planned by the school boards in Toronto, 
North York and East York. A curriculum 
package and teaching kit on Hong Kong were 
prepared by the Toronto Board of Education 
for distribution to schools. Various work- 
shops were also held for teachers, counsel- 
lors, and all students. 

A two-day Hong Kong Conference on 
Social and Cultural Dynamics was held in 
Vancouver (Oct. 16-17), sponsored by the 
David Lam Centre for International 
Communication at Simon Fraser University, 
the Chinese Law Program of the Centre for 
Asian Legal Studies, UBC, and several 
Chinese community groups. The conference 
included sessions on economic, legal and set- 
tlement issues as well as on Women of Hong 
Kong. The last was organized by the Canada 
and Hong Kong Project. Speakers included 
several leading public figures from Hong 
Kong - the Hon. Edward K.Y Chen, Hon. 
Moses Cheng, Mrs. Rita Fan. and Hon. Emily 
Lau. | For further information on the Toronto 
and Vancouver conferences, see Update, no. 
7. "Education Programs," p. 4.] 

Other education programs in Vancouver 
included an exhibition and seminar on Hong 
Kong Higher Education, held at UBC (Oct. 
14-15) and a seminar, "Forging Long-Term 




FESTIVAL HONG KONG 

Bridge Across the Pacific M && i¥ ^tt 9£ ,& t)D IH ■ Pont Sur Le Pacifique 



6 UPDATE 



Til's.'' .11 Simon Fraser(Oct. 14). A teachers' 
workshop on "Teaching about Hong Kong'' 
and a "H.K. Teaching Module for BC 
Teachers" were held on Oct. 17-18 at SFU 
Harbour Centre downtown. 

The University of Calgary held a two-day 
mini-festival entitled "Opportunities." on 13- 
14 October. In addition to arts, sports and cul- 
tural displays, there were several seminars, 
such as on tourism and Hong Kong airport 
developments. An Education Programme and 
luncheon was presented on Sept. 26 in 
Montreal at the Ministry of Education- Over 
30 professors and teachers participated in ses- 
sions u hich focused on the unique character 
of the history, geography, and the social and 
business culture of Hong Kong, as well as on 
the immigration of Hong Kong people to 
Quebec. 

In addition to the above, each festival city 



offered a variety of special local events for 
the entire community. Gala benefit dinners 
were held in all five locations. Calgary 's fes- 
tival program included dragon boat races (Oct. 
3), a Chinatown Carnival (Oct. 10-12). and a 
production of Af. Butterfly (Sept. 13-Oct. 11). 
with a guest actor from Hong Kong. In a spe- 
cial ceremony Nov. 1 3 at the Museum of 
Civilization in Ottawa/Hull, Governor Patten 
presented the official gift to Canada of a drag- 
on boat from Hong Kong, which will be on 
exhibit at the Museum. Montreal featured a 
painting exhibit (Sept. 10-Oct. 25) of the 
works of Ming Ma. a Monkey King Mascot 
promotion during the month of October, a 
seminar on film and TV. co-production (Oct. 
5: also presented in Toronto and Vancouver), 
fashion show (Oct. 5), and a conference on 
Hong Kong Architecture (Oct. 15). 

Special community events in Toronto and 



Heads of Three Universities Sign Joint Agreement 



On September 28. Wang Gungwu, Vice- 
Chancellor of the University of Hong Kong. J. 
Robert Prichard. President of the University 
of Toronto, and Charles K. Kao. Vice- 
Chancellor of The Chinese University of 
Hong Kong, signed a partnership agreement 
between the three universities. The result of 
prior years of cooperative exchanges, this for- 
mal agreement includes collaboration in 
research, faculty exchanges, and graduate 
studies. 

The signing ceremony and reception took 
place at Massey College. U. of T.. in conjunc- 
tion with the University Education 
Programme of the recent Festival Hong Kong 
92. The university heads felt that Festival 
Hong Kong was an opportune event to for- 
malize and strengthen the existing academic 




I ice-Chancellor Wang Gungwu (HKU), 
President J. Robert Prichard (U ofT), and 
Vice-Chancellor Charles Kao (CU) sign joint 
agreement; photo by Linda Hutjens. 



relationships between their institutions. This 
agreement will serve as the basis of a commit- 
ment to foster fruitful and lasting bonds 
between scholars, students, and the wider 
communities in both Hong Kong and Toronto. 

Both the president and vice-president, 
research and international relations, of the 
University of Toronto will be travelling to 
Hong Kong in early December. The main pur- 
pose of their visit is to further academic rela- 
tionships with the University of Hong Kong 
and Chinese University as outlined in the joint 
agreement, to meet with U. of T. alumni, and 
to promote development activities. Scheduled 
to visit Hong Kong from 1-5 December. 
President Rob Prichard plans to speak at the 
Faculty of Law (HKU), the Canadian 
Chamber of Commerce, and a recruitment 
function for high school principals. Vice- 
Chancellor Wang Gungwu. President 
Prichard. and Vice-Chancellor Charles Kao 
will be featured speakers at a reception of the 
University of Toronto Alumni Association. 

Vice-President James Keffer will be in 
Hong Kong from December 5-10 to continue 
talks with the two Hong Kong universities on 
the implementation of the joint agreement. He 
will also present a paper on Technology 
Development and the Role of Higher 
Educational Institutions at a conference on the 
Integration of Knowledge and Technology 
Transfer, sponsored by the Hsu Chung Ching 
Education Foundation of Hong Kong. 



nearby suburbs included the Chinese 
Celebration Day at Harbourfront (Sept. 27). a 
Hong Kong Carnival at Metro Convention 
Centre (Oct. 3-4). downtown Chinatown 
Celebration (Oct. 3). Scarborough Lantern 
Festival (Sept. 29), Fun Day Festival in North 
York i Sept. 27). the Markham Hong Kong 
Festival Fireworks Celebration (Oct. 4), exhi- 
bitions in Brampton and Mississauga (Sept. 
26). Harvest Festival at the Mississauga 
Chinese Centre (Sept. 27). and Festival Hong 
Kong in Etobicoke (Oct. 4). 

Vancouver celebrated "Hong Kong 
Weekend" at Granville Island i Oct. 3-4 1, a 
series of "Friendship Dinners'' at various 
schools. "Pan Pacificus: a Celebration" of the 
Vancouver Sinfionetta. and on Nov. 1 1 the 
concluding Gala Benefit Dinner with 
Governor Christopher Patten as special guest 
and speaker. 

Change in Canada and 
Hong Kong 

fry John Higginbotham 

Commissioner for Canada in Hong Kong 

In his keynote speech October 2 at the 
conclusion of the Societies in Transition 
Conference. Commissioner John 
Higginbotham provided a personal view of 
the historical causes, startling differences, 
and surprising parallels that have led to the 
special closeness that is growing between 
Canada and Hong Kong. 

In particular, he drew strong parallels 
between Canada and Hong Kong. He spoke 
about the similarities between the two soci- 
eties in historical evolution and in aspirations 
for the future. Canada and Hong Kong share 
a British tradition, and they also have similar 
traditions of bilingualism. multi-culturalism. 
and cosmopolitanism. They both value an 
open press, the common law. an efficient 
public service, and a balance between public 
and private sectors. Both societies were 
shaped by migrants fleeing from revolution; 
their preferred solution to problems is prag- 
matic compromise. Neither is given to strong 
ideological positions. Both live next to pow- 
erful neighbours whose twitches and grunts 
can be disturbing. Both are conservative, 
cooperative, moderate, and tolerant. Hong 
Kong is a comfortable place for Canadians 
as Canada is for people from Hong Kong. 

Higginbotham. cont'd paae 8 



UPDATE 7 



Higginbotham. cont'd from page 7 

The two societies are now confronting 
common global, economic and social chal- 
lenges and distinctive political tests, e.g., 
1997 and Canadian constitutional evolution. 
Both rely heavily on international trade and 
have to make their way in a competitive 
world. They must do this while maintaining 
the aims they share: a free society, a good 
place to raise children, a decent and honest 
society, with a responsible government. 

Both communities have great strengths in 
terms of values and institutions in handling 
change. Canada and Hong Kong are twenty- 
first century laboratories for the world in 
terms of balancing and reconciling rights and 
identities in a pragmatic way. The human 
links being forged between the two places are 
robust, complex, mutually reinforcing and 
will transcend short-term political change. 



^g£e3L Jw ' 



Members of the panel which closed the 
Societies in Transition Conference: from left 
to right Dora Choi (Chinese Univ.), Ming K. 
Chan (Hong Kong Univ.), Byron Weng 
(Chinese Univ.), Commissioner John 
Higginbotham, Janet Salaff(U. of'T.). Cheuk- 
van Lee (HK Confed. of Trade Unions), and 
Sidney S. Poon (Q.C., Toronto). Photo by Iris 
Chung, Sing Tao. 



Legco Delegation Visits Canada 
During Festival Hong Kong 



From 25 September to 3 October, six 
members of Hong Kong's Legislative Council 
(Legco) visited Canada at the invitation of the 
Canadian Branch of the Commonwealth 
Parliamentary Association, chaired by Senator 
William Doody. The purpose of the visit was 
to introduce Legco members to Canadian par- 
liamentary procedures. The invitation was 
also a response to the visit of Canadian parlia- 
mentarians for Festival Canada in Hong Kong 
in June 1991. 

Members of the Legco delegation included 
Fred Li Wah Ming, Hui Yin-fat, Lau Chin- 
shek, Allen Lee Peng-fei, Albert Chan Wai- 
yip, and Vincent Cheng Hoi-chuen. Mrs. 
Shelley Lau, JP, Secretary General of Omelco, 
also accompanied the Legco members. The 
group spent two days in Ottawa (Sept. 28-29). 
meeting with a number of parliamentarians as 
well as government representatives. 

Their agenda included talks with the Hon. 
John Fraser. Speaker of the House; the Hon. 
John Bosley, Chair of the Commons Standing 
Committee on External Affairs and Inter- 
national Trade; the Hon. Guy Charbonneau, 
Speaker of the Senate; and John Tennant. 
Director, North Asia Relations. External 
Affairs and International Trade Canada. The 
schedule also included a meeting with the 
Canada-Hong Kong Parliamentary 
Friendship Group, a roundtable discussion on 
Canada-Hong Kong relations with members 
of External Affairs, a briefing with Elections 
Canada, and dinner with Canadian parlia- 



mentarians. The Canada-Hong Kong 
Business Association hosted a luncheon for 
the delegation, at which Allen Lee delivered 
an address on political and economic devel- 
opment in Hong Kong. 

In Toronto the Legco delegation toured 
Queen's Park and met with several members 
of the Ontario Legislature, including the 
speaker, Hon. David Warner. In addition, the 
six Legco members participated in a number 
of events for Festival Hong Kong both in 
Ottawa and Toronto, including attendance at 
the opening ceremony in Toronto on 26 Sept.. 
the gala dinner, business seminars, meetings 
with students at U. of T, the Hong Kong 
Carnival, and a reception with Premier Bob 
Rae at the Royal Ontario Museum. 

The Legco delegation was part of the new 
Canada-Hong Kong Parliamentary 
Friendship Group, formed last July to pro- 
mote linkages between Canadian and Hong 
Kong legislators. The Parliamentary 
Friendship Group is chaired in Canada by the 
Hon. William Blaikie, MP; its vice-chair is 
the Hon. Girve Fretz, MP. Allen Lee serves 
as convenor of the Group in Hong Kong. 
Membership in the CHKPFG includes 39 
Legco members as well as a number of 
Canadian MP's. This is the second "interna- 
tional" parliamentary group formed by Hong 
Kong's Legislative Council. The first group 
was established with members of the 
Japanese Parliament, and a third group is 
planned with Australian parliamentarians. 



Changing Patterns 

of Immigration 

from Hong Kong 

by Diana Lary 
UBC, Vancouver 

Some major shifts which will influence 
future patterns of immigration from Hong 
Kong are emerging. There seems to have 
been a considerable fall in the number of 
applications being made by Hong Kong peo- 
ple to move to Canada. In 1991 14,500 appli- 
cations were made world wide by people 
whose last permanent residence was Hong 
Kong; the number of people covered by the 
applications was 46,214. In the first half of 
1992, only 3,567 applications were made, for 
9,794 people. 

Immigrant Applications, CLPR Hong Kong, 
by place made 

Year Hong Kong Elsewhere Total 

1989 15930 91% 1570 9% 17500 

1990 12912 867, 2156 14% 15068 
1991* 12251 84'/, 2249 16% 14500 
1992 2449 69% 1118 $19i 3567 
*These figures are higher than those cited in our 
last Update since the earlier figures were incom- 
plete at that time. 

The major decline in applications seems 
to have been in Hong Kong itself. Of the 
3.567 applications made in the first half of 
1992, 1,118 were made in places other than 
Hong Kong, or 31% of all applications, as 
opposed to 2,249 of 14,500, or 16% in 1991. 
Of the 1992 applications, 1,704 were made in 
the USA, 63% of those not made in Hong 
Kong. In 1991 the figures for applications 
made in the USA were 1 .549 of 2,2249, or 
69%. 

Though the number of applications has 
declined dramatically, this decline will affect 
future immigration. It has not yet had any 
influence on current immigration. In fact, the 
number of visas being issued has not 
declined nor has the number of landings in 
Canada. In 1991 and the first half of 1992, 
the numbers of visas issued continued at very 
high levels. The first half figures for 1992 
seem to show that the trend over 1991 is 
upward. 



8 UPDATE 



Visas Issued to Hung Kong Residents 
(CLPRHK) 



1989 

1990 

1991 

*1992 



22130 
22566 
29620 

1X502 



Life Style Changes of Immigrant Women 
from Hong Kong 



The final figures tor [991 arc higher than the fig- 
ure (26.647) published in the last Update. The 
l l >"2 figures are for the first half of the year only 

A large number of visas are being issued 
to Hong Kong residents at posts other than 
Hong Kong. In fact. 12.3% of 1991 visas and 
13.8% of 1992 visas were issued in places 
other than Hong Kong. Most of these were 
issued in the USA. In 1991. 2.971 of the 
3,643 visas not issued in Hong Kong were 
dispensed in the USA (82% >. In the first half 
of 1 992. the comparable figures were 1 .877 
of 3.107 (60', ). Many of these visas were 
probably sought by people already in Canada 
as visitors, who went south of the border for 
convenience, but others may have been made 
by people who wanted to avoid the lengthy 
processing time in Hong Kong. Some statis- 
tics, for places other than the USA. are hard- 
er to understand. For example, who were the 
two families from Hong Kong whose immi- 
grant visas for Canada were issued in Bogota 
in 1992° 

Landings in Canada in 1991 and 1992 
continue to be high. The 1992 figure is for 
the first six months of the year only. If land- 
ings continue at the same level for the rest of 
the year, then the rate of landings is increas- 
ing rather than declining. These figures rep- 
resent people who applied for immigrant 
visas in 1989 or 1990 and received their visas 
in 1990 or 1991. Successful applicants have 
up to one year after their application is 
approved to land in Canada. 

Landings in Canada (CLPR HKl 



1989 
1990 
1991 
"1992 



19962 
29266 

22339 
19411 



*This figure is for the first six months of 1992. 

All statistics are from the Immigration 
Statistics Division. Employment and 
Immigration Canada. 



d) Tang 
Hong Kong 



In March 1991. as part of my sociological 
studies at the University of Toronto. I con- 
ducted research on immigrant women from 
Hong Kong. My study involved extensive 
interviews with ten immigrant women about 
changes in their life styles after migrating to 
Canada. In general, the data confirmed that 
these women from Hong Kong experienced 
life style changes which involved increased 
work (either at home or outside), less leisure 
time for entertainment, and fewer luxuries. 
Reasons given for these changes were the 
burden of additional housework due to the 
expense of domestic help in Toronto or lack 
of support from an extended family, fewer 
relatives and friends in Canada with whom to 
socialize, and little extra money for entertain- 
ment. 

Five respondents felt they spent far 
greater time than in Hong Kong at domestic 
chores, which included tending their family 
and housework. Four of these women had 
hired migrant domestic helpers from the 
Philippines when they lived and worked in 
Hong Kong. As one complained, "I am now 
mother, working woman, and domestic 
helper, all rolled into one." One interviewee 
had experienced little change in the amount 
of domestic labour because her mother, who 
had cared for her child in Hong Kong, had 
also migrated to Canada. 

However, four other women confirmed 
that they spent more time in their outside 
occupations, either because of increased 
financial needs or as a result of a change in 
the nature of their jobs. Two of these women 
were working long hours in restaurants, 
another laboured as a housemaid in order to 
supplement family income, and a fourth had a 
better and more lucrative job than the one she 
had in Hong Kong but it necessitated work- 
ing overtime. 

Loss of domestic support seemed to be a 
particularly crucial variable affecting life 
style changes of the respondents. Lack of 
adequate or affordable domestic help was 
cited as a reason why many of these women 
had lowered their career expectations or re- 
focused their priorities in life. The most obvi- 
ous case was that of a woman with a master's 
degree. Although she had a position "compa- 



rable" to the one she held in Hong Kong, she 
felt "semi-retired" and had decided that she 
could not be "as ambitious in her work" as 
she was in Hong Kong, Ever) morning on 
her way to work, she had to drive her daugh- 
ter to daycare and pick her up again after 
work. Unlike her situation in Hong Kong 
where her Filipina domestic helper fetched 
the children from school, she now felt "leav- 
ing the office on time" had become her major 
concern. 

Another interviewee, who was more afflu- 
ent, had decided to become a full-time home- 
maker and not "relegate" her children to day - 
care. She reasoned that since the famil) 's 
immigration was for the future of the chil- 
dren, she should do her utmost to enhance her 
children's chances for success in Canada. She 
believed that the academic achievement of 
her children would "more than compensate" 
her personal "loss." Thus, she kept herself 
busy tending the house and doing volunteer 
work in her children's school - what she con- 
ceived as the lifestyle of a "typical North 
American, suburban housewife." 

Of the ten interviewees, there was only 
one whose job status had risen in Canada, 
and she had no children. Though she does not 
have a university education, she is verj self- 
confident, and as she expressed it. "A good 
driver is a good driver no matter where she 
drives, right?" However, she readily admitted 
that her opportunity for a career would be 
diminished if she decided to have a child. 

Many of these women preferred to live in 
Chinese communities like parts of 
Scarborough, not because they wanted to cre- 
ate "a little Hong Kong." but in order to com- 
pensate for the support network they have 
lost - their extended family, friends, and a 
familiar and unintimidating cultural habitat. 
As one woman lamented, in her first year 
here she had to "releam everything." and she 
was grateful there is a Chinatown and for the 
many Chinese friends she came to know in 
her neighbourhood. 

Some of the subjects chose to live in out- 
lying communities of Toronto simply because 
they have family there. Especially for immi- 
grant women who do not speak English, as 

Women, cont'd page 10 



UPDATE 9 



Visa Students' Experiences in Canada 



The following excerpts are from two stu- 
dent essays written for the curriculum pack- 
age on Hong Kong and compiled for the 
Toronto Board of Education this September 
1992. Both essays are from visa students 
attending public secondary schools in 
Toronto. We are grateful to Arlene Tan:. 
Coordinator of the Social Studies 
Department. Curriculum and Program 
Division, for allowing us to reprint these 
essays. 

"A Visa Student's Life in Toronto" 

by Shnki Mo 

I have lived in Canada without my family 
for half of a year, and I have begun a new life 
because I am here alone.... I am 18 years old. 
I am the youngest child in my family. Since I 
have already graduated from secondary 
school in Hong Kong. 26 equivalent Ontario 
Secondary credits have been given to me. 
Therefore. I only need to complete 6 more 
OACs [Ontario Academic Credits] including 
English to be admitted to university. 

In order to go to University, I came to 
Canada to be a visa student but why would 



Women, cont'd from page 9 

was the case with two interviewees, the pres- 
ence of the surrounding Chinese community 
"makes life bearable." Of vital concern to 
these women is the quickness or extent to 
which their ESL English classes will assist 
them in getting out of "demeaning jobs" or 
their present "immobility." 

For those in this sample who are young 
and well-educated, moving to Canada still 
meant revising their expectations and re- 
focusing their priorities. Inevitable changes 
in lifestyles have occurred. Many now spend 
more time on housework and childcare at the 
expense of compromising their career goals. 
At the same time, because of their own expe- 
rience of dislocation and insecurity, these 
women tend to make extra efforts to ensure 
the future success of their children. Thus, 
they take them to a number of Saturday 
enrichment classes, including Chinese lan- 
guage, computers, and "Kumon." or 
Japanese style drilling in mathematics. 



I choose to study in another country? I can 
learn English better and I can become inde- 
pendent 

During my first class, I found that I need- 
ed to face a great problem - language. 
Although I have been learning English since 
kindergarten in my country. I was not able to 
talk to people. I could not really understand 
what people said or express what I wanted to 
say. This was especially difficult in my 
English class; my limited knowledge about 
Canadian society almost excluded me from 
the discussions. Eventually I lost interest 
studying in the class. Finally. I ended up fail- 
ing the course! 

This is the first time I have to leave my 
family and live in another country alone. I am 
learning how to take care of myself. I have to 
plan my daily life because 1 must do both 
homework and housework after school. 
Nobody would help me! Sometimes, I would 
forget to have dinner because of studying. 
Anyway. I feel I have done quite well in 
learning to live an independent life. 

In the last year, I have improved my 
English. I can communicate to people much 
better now. I am trying to speak English 
more. So I have less difficulties in the lan- 
guage. I passed the upgrading course 
ESL4A7 at summer school. It really gave me 
confidence for learning English. 

I will study at high school for one more 
year even though I got six OAC credits 
already. I cannot go to university yet. It is 
because my poor English would be the 
biggest handicap in my higher education.... 

After I finish university. I will go back to 
Hong Kong because it is quite difficult to find 
a job in Canada. 

"One Year in Canada as a Visa 
Student" 

by Frederick Lee 

I am 19 years old. I come from Hong 
Kong. So far I have lived in Canada for about 
one year. I have learned and grown a lot over 
the last year. 

When I was 1 8, my parents asked me if I 
wanted to go to Canada to study. I felt very 
happy. On the other hand. I was worried 
because the Canadian school fees are very 
high for one year. I know it is not easy for my 



parents to earn the money. They have decided 
for me to acquire a good education and to 
have a good career in the future.... When I 
finish my education I will go back to Hong 
Kong. I don't want to stay in Canada. I love 
Hong Kong more than Canada. I don't mind 
about China taking over Hong Kong on 30 
June 1997. 1 think that the British is only 
interested in material gains. 

On 4 June 1989, nobody believed that the 
Chinese Government would shoot the univer- 
sity students. I know that the Chinese 
Government was wrong, but we could not 
stop it. I think that after 1997 Hong Kong's 
economy would be the same. At that time I 
will go back to find a job and stay there. 

Hong Kong is a good place. People there 
work so hard and they never seem to stop! I 
believe that China's governing of Hong Kong 
will be similar to Britain's for a long time to 
come. It may be better than before. Hong 
Kong citizens are afraid that China will make 
them conform to the way that China has been 
ruled, and the economy would decline. 
However, I would like to protect our country 
by participating in the work force. 

Many differences exist between Canada 
and Hong Kong. There are four distinct sea- 
sons in Canada. In Hong Kong, we do not 
have such sharp seasonal changes - the 
colourful fall and the white snow.... Toronto 
is a city full of immigrants, and they speak 
their own languages and live their own cul- 
tures. 

Last week I joined the Toronto Board of 
Education Orientation Program for 
International Students, even though I have 
been going to school here for a year. It was 
wonderful. I had the opportunity to meet and 
make friends with other foreign students like 
myself. 

I am renting a room in a rooming house 
near Christie subway station. I have to man- 
age my own budget, cook, clean, study, and 
decide on everything that affects my develop- 
ment and progress in life. My parents cannot 
help me or look after me because they are too 
far away. I miss my family terribly. It's a 
lonely life for me. but I'm also learning inde- 
pendent living skills. 



10 UPDATE 



Canadian Stories 



Crime Wave in Hong Kong 



The Asia Pacific Foundation of Canada 
sponsored a 9-da> Ontario lour in November 
of the musical play, Canadian Stories, the 
first national tour of the Vancouver Youth 
Theatre. The play explores the thoughts, feel- 
ings and impressions of young immigrants to 
Canada. What makes this original work so 
compelling is that the tales it dramatizes are 
all true, coming from the stories of young, 
English-as-a-Second-Language students who 
have recently moved to Canada. The per- 
formers in the play range in age from 13-20. 
several of whom are recent immigrants them- 
selves. As well as their production at the 
Harbourfront Centre Premiere Dance Theatre 
in Toronto, the group also performed at a 
number of elementary and high schools in 
the Metro area. 

As Graeme McDonald. President of the 
APR writes. "Canadian Stories allows us to 
hear and see the anguish, the humour and 
frustrations of newcomers trying to make 
Canada their home. It puts a human face on 
the issues of confronting racism and culture 
and racial diversity w ithin Canada - issues 
vital to the social and economic fabric of 
Canada. 

"We believe that the message and spirit 
behind each of these stories represent the 
tremendous human resource that Canada 
gains when people from the Asia Pacific 
region and other parts of the world decide to 
make Canada their new home." 

Specializing in creative "playbuilding," 
the Vancouver Youth Theatre has been invit- 
ed to Japan. Australia and Europe. This trip 
marks the first time the VYT has performed 
in other parts of Canada outside British 
Columbia. During the summer of 1991. the 
group also toured Canadian Stories through 
the United Kingdom. Having won awards in 
Japan and most recently the Canadian 
Secretary of State Award for Excellence in 
the Field of Race Relations, the VYT present 
a memorable work in Canadian Stories, 
which portrays the resilience, endurance and 
hope of young people. Carole Tarlington is 
the Artistic Director of the play, and John 
Sereda is its Musical Director. For more 
information, please contact: 
Vancouver Youth Theatre 
Suite 200 - 275 E. 8th Ave. 
Vancouver, BC VST 1R9 
tel: (604) 877-0678 



In Kwok-cheung Slutm 
Hong Kong 



Many Hong Kong people are worried by 
the deteriorating law and order situation since 
violent crime, armed robberies, and smug- 
gling are still widespread. According to offi- 
cial figures in April of this year, the violent 
crime rate remained high at 4.4 1 8, an 
increase of 4.2% over the same period last 
year. Although the total crime rate has 
dropped slightly from that reported in 1991. 
this year witnessed a spate of violent armed 
robberies - 18 in the first quarter of 1992 and 
double that for the same period last year. (See 
figure 1.) 

Figure 1: Quarterly Crime Statistics (Selective) 

1 st Quarter 4th Quarter 1 st Quarter 
1992 1991 1991 

Total crime 20.049 22.348 20,340 

Total violent 

crime 4.418 4.S42 4.240 

Robbery with 

firearms 18 17 9 

Robbery w ah 

pistol-like object 144 133 129 

Source: South China Morning Pest. 25 April 1992. 

The new crime wave began in March 
1991 when police faced increased smuggling 
between Hong Kong and China. Smugglers, 
who possessed powerful speed boat engines 
(called tai-fei). illegally shipped luxury cars 
and other high-priced consumer goods to 
Mainland China. Last year the number of 



smugglers' boats in Hong Kong waters 
peaked at 1 .447 in one month [SCMP, 2 1 
March 1992). Most serious is the illegal 
importation of Chinese lethal weapons into 
Hong Kong. In June 1991, robbers armed 
with Chinese-made AK-47 automatic rifles 
fired about forty shots at police. Hours later 
masked gunmen simultaneously raided five 
jewelery stores, exchanging more than thirty 
shots with police. Five people were injured. 
In April 1992, robbers used AK-47 rifles and 
grenades to fight back police in Tai Kok Tsui. 
Seventeen people were injured, including 
four police officers [Ming Pao. 25 April 
1992]. 

A number of surveys reflect the concern 
of Hong Kong people w ith this wave of vio- 
lence. One study conducted by the Social 
Sciences Research Centre of the University 
of Hong Kong last April found that over half 
the respondents considered that the law and 
order situation in Hong Kong had deteriorat- 
ed [SCMP, 8 May 1992]. Government opin- 
ion polls also confirmed this result. Since 
1983 the City and New Territories 
Administration (CNTA) has held a series of 
telephone surveys to monitor public opinion 
on perceived problems and the Government's 
overall performance. Its recent reports show- 
that concern with "crime-related problems" 
has risen from fifth (6% ) to top place (429i I, 
between November 1991 and May 1992. 
(See figure 2.) 

Crime Wave, cont'd page 12 



Dragons of Crime 
Asian Gangs in Canada 



An October 3 reception in Toronto 
marked the launching of a new book on 
Asian crime gangs in Canada. Dragons of 
Crime: Inside the Asian Underworld, by 
James Dubro, published by Octopus 
Publishing Group of Markham, Ontario. 
Researched over ten years by the author, 
the book explores the historical develop- 
ment of Chinese gangs in Canada as well 
as the recent rise in criminal activity of 
Asian tongs, triads and gangs in Canadian 
cities. It traces the activities and interna- 
tional connections of these gangs and con- 
siders the impact of Hong Kong's return to 



China in 1997 on criminal activity in 
North America. The book is available in 
hardback (CDNS28.95) from the Sleuth of 
Baker Street book store (1595 Bay-view 
Ave.. Toronto). 

James Dubro is a researcher on orga- 
nized crime in Canada and has written 
several books and articles on the Canadian 
Mafia. His investigation of criminal gangs 
began in the 1970s when he helped pro- 
duce and research the CBC"s 
"Connections" television series on orga- 
nized crime. 



UPDATE 11 



Crime Wave, cont'd from page i 

Figure 2: Problems Perceived of Most Concern 
to Hong Kong People 

Nov. Jan. March May 
1991 1992 1992 1992 

Crime-related 

problems 6% 8% 16% 42% 

Hong Kong future 18% 23% 15% 13% 

Economv-related 

problems 23% 28% 15% 13% 

Housing-related 

problems 24% 13% 16% 11% 

Labour-related 

problems 6% 10% 9% 4% 

(No. of 

respondents) (935) (1064) (1048) (1079) 

Source: Report of an Opinion Poll, from Nov. 
1991 to May 1992, CNTA 

When asked whether Hong Kong was 
becoming more dangerous than other big 
cities, the Deputy Commissioner of Police, 
John Sheppard, insisted that Hong Kong was 
still a very safe place to live, but he also rec- 
ognized that some "vicious thugs" have been 
imported from China to Hong Kong [SCMP, 
10 May 1992]. The China factor makes it 
more difficult for Hong Kong police to cope 
with the crime wave. Firstly, many criminals 
associated with local gangs are illegal immi- 
grants from China. Secondly, firearms used 
by robbers on the streets of Hong Kong are 
being smuggled from the Mainland since 
weapons are now easily available in China or 
via China from Vietnam. Thirdly, after hav- 
ing committed crimes in Hong Kong. 
Chinese criminals can flee back across the 
border. 

Recently. Sino-Hongkong cooperation has 
been initiated to curb cross-border crime. In 
March Hong Kong police set up a direct 24- 
hour, anti-smuggling hotline with their 
Chinese counterparts. After his visit to 
Beijing in May, the Policy Commissioner. Li 
Kwan-ha, announced China would establish 
a "liaison office" in Hong Kong to aid local 
police to combat crime [SCMP, 10 May 
1992]. However, the reaction of Hong Kong 
people to a Chinese "liaison office" is 
ambivalent. A survey sponsored by Ming 
Pan \ 18 May 1992] showed that half the 
respondents were in favour of the establish- 
ment of such an office, while the other half 
were opposed. On the one hand. Hong Kong 
people understand that without Chinese 
cooperation it would be difficult for the local 
police force alone to check the crime wave. 
On the other hand, they fear PRC involve- 
ment in Hong Kong's law and order system 
as it may lead to China's intervention in local 
administration. 

12 UPDATE 



Hong Kong in the Mainland Press 



by Jane Greaves 
Shenzhen 



The newspaper pickings in Beijing were 
slim this past summer; however, that this 
might be the result of lack of newsworthy 
events is not the case. Filling the Hong Kong 
papers are articles on recalculations of the 
airport budget, bilateral negotiations on air- 
port financing, a change in the airport design, 
a new governor, and debates over appoint- 
ments to the Legislative Council (Legco), the 
1995 elections, and land used by defense 
forces. Why there was so little coverage of 
these Hong Kong events in People's Da<Iy 
and China Daily is a difficult question. More 
feasible is a look at how these issues were 
presented in the few articles that appeared. 

Every few weeks, an article appeared, 
either in English or Chinese, reiterating 
China's confidence that the transfer of power 
will be effected smoothly, provided both 
sides strictly abide by the Sino-British Joint 
Declaration and the Basic Law. In one such 
article, a sentence was added to the last para- 
graph that mentioned the June meeting of the 
Sino-British Joint Liaison Group. The main 
topic of the meeting, the article reported, was 
the future of lands now used for defense pur- 
poses in Hong Kong. Unfortunately, it did not 
elaborate on what had actually been dis- 
cussed, whether any decisions had been 
reached, or whether the issue would be taken 
up again. This article resembled many others. 
To the reader, it served as a vehicle for 
Beijing to reiterate China's commitment to 
the Joint Declaration and the Basic Law and. 
by implication, to question Britain's. 

The changing of the Governor of Hong 
Kong in early July merited only three articles. 
Lord Wilson's departure was covered in a 
three paragraph review. A second article, on 
the day of the arrival of the new Governor, 
published Chris Patten's goals to continue the 
British government's policy on Hong Kong 
and to build a constructive relationship with 
China. Governor Patten's swearing in was 
covered two days after the event in a third 
article. In August. China Daily reported that 
Patten will visit Beijing for two days on the 
12-14 of October. [This was later changed to 
20-22 Oct.] 

For an issue so central to the determina- 
tion of Hong Kong's future political structure. 
Legco received surprisingly little press. 
Appointments to Legco and the 1995 elec- 



tions were mentioned in only one article in 
mid-June. Governor Patten's comments and 
China's rebuttals (or China's comments and 
Patten's rebuttals), which made daily front 
page news in Hong Kong, were not even 
acknowledged by the Mainland press. 

The bulk of articles discussed the Port and 
Airport Development Strategy (PADS). In 
June the upward revision of the estimated 
cost of the Chep Lap Kok airport project - an 
increase of 13.8% in the previous ten months 
- was a great source of concern in the 
Mainland press. Reports on the high-level 
talks between the Chinese and British gov- 
ernment. 3-7 July, and the Sino-British 
Airport Committee meeting, 16 July, main- 
tained China's great concern but also 
expressed its "positive and supportive attitude 
toward the construction of the new airport." 
However, an article on 23 July in China 
Daily did not hesitate to suggest where the 
responsibility lies on any future delay in 
PADS: 

If the Hong Kong government had under- 
taken construction of the new airport 
within the stipulated scope of the memo- 
randum after it was signed, all the con- 
cerned projects would have progressed 
smoothly.... the problem now is that new 
issues have been raised, as the financial 
arrangements proposed by the British side 
exceed the stipulations of the memoran- 
dum by a large margin. 
On 1 7 August, the Provisional Airport 
Authority announced an improvement of the 
layout of the new airport which would trim 
HK$150 million off the budget of HKS175.3 
billion. In two of the articles, one in Chinese 
and one in English, there was a visible "I- 
told-you-so" attitude: the new layout shows 
"that the former design is not the 'best 
design' as some officials had claimed.... this 
showed the criticism against the former 
design had good grounds, and it is absolutely 
necessary to listen to opinions from various 
circles in the construction of the new airport." 
In sum. the few articles that appeared dur- 
ing the summer managed to avoid any in- 
depth discussion of the issues (except where 
it was in China's favour). At the same time, 
the reader of the Mainland press is left with 
the impression that Beijing does not have 
complete confidence in the UK's intentions. 



Discussion of legal relations between 
Hong Kong and China has centred on the 
Hong Kong Basic Law since its enactment in 
1990. Concern has been expressed that after 
1997 Beijing will use the interpretation of 
both the Basic Law and the Sino-British Joint 
Declaration to enlarge its role in the day to 
da\ running of Hong Kong. However, less 
considered is the fact that the future of Hong 
Kong-China legal relations is already taking 
shape. There are an increasing number of 
activities occurring on both sides, within and 
outside the government, that are setting 
ground rules for the future. This article 
explores the growing network of legal activi- 
ties that is developing in anticipation of 1997. 

Legal cooperation between Hong Kong 
and the Mainland has been a slow and hesi- 
tant affair. Mutual distrust has often brought 
limited progress to a standstill - for example, 
the lengthy confrontation between the Hong 
Kong and British governments and Beijing 
over the Port and Airport Development 
Strategy (PADS). 

China is concerned that Hong Kong's 
unfamiliar legal system will be used to thwart 
the exercise of Chinese sovereignty over the 
Hong Kong Special Administrative Region. 
Certainly, these fundamentally different legal 
systems can be an obstacle to cooperation. 
Little more than an offshoot of English law. 
Hong Kong's common law system has begun 
to develop its own character only in the past 
decade. By contrast China's legal system, 
only recently rescued from the oblivion of the 
Cultural Revolution, is a rapidly changing 
mixture of indigenous. Soviet, civil and com- 
mon law concepts. 

However, Chinese apprehensions in no 
way compare to the deeper fears of Hong 
Kong residents tow ards the state of law in the 
Mainland. In spite of China's impressive 
annual output of new laws and regulations, 
many Hong Kong Chinese remain to be con- 
vinced that anything remotely approaching 
the rule of law exists across the border. Too 
often it seems that it is the word of a Party 
leader that is the law. Yet. in the face of this 
hostility, necessity is forcing a change of atti- 
tude regarding the role of law in Hong Kong- 
China relations. Recent developments show a 
growing acceptance that, however difficult 
cooperation may be. a working legal relation- 



China-Hong Kong Legal Relations 



by Pern Keller 
Faculty oj Law 

Manchester I ntver.sily 

ship is an inevitable part of the transition to 
Chinese rule. 

Hong Kong's changing legal relationship 
with China can be detected in four areas: the 
transfer of sovereignty, preparation of the 
Hong Kong legal system for 1997, the impact 
of Hong Kong laws and regulations on the 
PRC legal system (especially southern 
China), and the role of private individuals in 
the development of cross-border legal rela- 
tions. First, at the level of grand politics is 
the transformation of a British crown colony 
into a Chinese Special Administrative Region 
(SAR). This involves the gradual demarca- 
tion of the limits of Hong Kong's autonomy 
within the PRC and in its relations with the 
rest of the world. 

In this area the spotlight has been on the 
negotiations between Britain and China con- 
ducted through the Joint Liaison Group, a 
body established under the Joint Declaration. 
Progress on many issues has been slow. 
Interrupted after the Tiananmen massacre in 
1989, these negotiations have frequently been 
bogged down by disagreements. For exam- 
ple, in the area of civil air services agree- 
ments between Hong Kong and foreign 
states, it has yet to be resolved whether the 
civil air link with Taiwan is a domestic issue 
falling under Beijing's authority or an inter- 
national issue falling under Hong Kong's lim- 
ited authority in international matters. Other 
outstanding issues have not reached the point 
of substantive negotiation between Britain 
and China. As time runs out, it is clear that 
some will remain partially or even entirely 
unresolved. 

Among the latter are the sensitive ques- 
tions of recognition and enforcement of 
Chinese civil judgments in Hong Kong as 
well as rendition (domestic extradition) of 
criminal suspects to the Mainland. 
Recognizing and enforcing foreign judicial 
decisions necessarily involves a degree of 
trust regarding the reliability of those judg- 
ments. Consequently, nations have historical- 
ly been restrictive in the terms and conditions 
they set for the acceptance of foreign judg- 
ments. Hong Kong, as a British colony, has 
largely limited its acceptance of judgments to 
those of other common law jurisdictions. 

However, as a future part of China, the 
territory can no longer be so choosey. Beijing 



has indicated that a judicial decision made 
anywhere within China against a Hong Kong 
party should be enforceable within Hong 
Kong and vice versa. In the Chinese \ iew, 
this is an inevitable consequence of unifica- 
tion. The difficulty for Hong Kong lies in the 
manifest weaknesses of the Chinese civil 
court system in which judges, often inade- 
quately trained in the law. lack independence 
from both government and the Communist 
Party. The Hong Kong government has estab- 
lished an advisory committee to examine pos- 
sible ways of resolving this issue. No doubt 
the avoidance of miscarriages of justice will 
be a high priority. 

Of even greater concern is the question of 
rendition of criminal suspects. Although 
Mainland Chinese sought by the Public- 
Security Ministry have been returned to 
China as illegal aliens, the sensitive issue of 
turning over Hong Kong residents sought for 
alleged crimes committed in China has not 
been settled. In view of China's use of capital 
punishment for many criminal offenses, a 
rendition agreement is likely to be repugnant 
to many Hong Kong people. 

The recent rise of violent organized crime 
that is closely linked to southern China has 
forced the issue of effective cooperation w ith 
Chinese public security forces. Therefore, it 
seems unlikely that Hong Kong can continue 
indefinitely in the position of needing 
Chinese cooperation but avoiding rendition. 
As much as the issue of recognition and 
enforcement of Chinese judgments and the 
rendition of criminal suspects is in many 
respects unpalatable, it also appears 
inevitable. Refusal to negotiate is to risk the 
imposition by Beijing of a unilateral solution. 
Hence, the search for a modus vivendi with 
Beijing on these matters is yet another item 
on a long list of unresolved problems. 

The second area of developing Hong 
Kong-China legal relations is in the work of 
the Hong Kong government to prepare the 
legal system for 1997. In accordance with the 
Joint Declaration and the Basic Law, Hong 
Kong is gradually severing its remaining 
statutory ties with Britain's legal system. UK 
statutes that have applied directly to the 
colony, such as the Merchant Shipping Act 
1894 and the Copyright Act 1956, are being 
Legal Relations, cont'd page u 



UPDATE 13 



Legal Relations, cont'd from page 13 

replaced with local versions. However, this 
work, which requires considerable expertise, 
has strained the resources of the govern- 
ment's Legal Department. Consequently, 
other legal links to Britain that appear not to 
offend against the Basic Law. including ordi- 
nances that make direct reference to British 
statutes, are to be left unchanged. 

The much publicized project to translate 
all of Hong Kong's ordinances and regula- 
tions into Chinese has. in fact, no direct role 
in the transition to PRC rule. It is more close- 
ly connected to the territory's restricted 
progress towards democracy and political 
maturity. This translation project is intended 
to reinforce the legitimacy of the common 
law in a Chinese community. However, 
because of the vast body of case law 
involved, complete translation of the com- 
mon law is plainly impossible. The project 
has therefore been limited to the translation 
of the large, but manageable, body of Hong 
Kong ordinances and regulations. Even this 
task is unlikely to be completed by the Legal 
Department's Law Drafting Division before 
1997. 

The significance of this exercise is diffi- 
cult to gauge. Perhaps essential from a politi- 
cal perspective, translation is a questionable 
exercise from a legal point of view. The 
Chinese language, which lacks direct equiva- 
lents for many common law terms, must be 
stretched to capture the meaning of the 
English original. Lawyers in Hong Kong will 
understandably continue to rely on the 
English version as the authentic form of the 
law. While to some extent translation will 
make Hong Kong law more accessible to 
Chinese speakers, commentators suggest that 
this strained translation of statute law is 
unlikely to bridge the gulf of language and 
culture. 

Hong Kong, therefore, faces a post-colo- 
nial future in which English will remain the 
principal language of the law. despite the fact 
that is is not the language of daily life for the 
vast majority of Hong Kong people. 
However, once British sovereignty ends, it is 
inevitable that many residents of the territory 
will come to question the acceptability of a 
foreign language legal system. 

In 1989. in anticipation of closer legal ties 
with China, the Legal Department established 
the China Law Unit within its Legal Policy 
Division. The task of this small unit is to 
advise on relevant developments in Chinese 
law and to raise awareness of PRC law within 



the government. Although a step towards 
legal cooperation with the Mainland, such a 
service, significantly, was not perceived to be 
necessary until five years after the signing of 
the Joint Declaration. The experience of the 
China Law Unit has shown that many gov- 
ernment departments remain skeptical of the 
benefits of advice on Chinese law. Yet, this 
may in part be caused by a general uncertain- 
ty within the government as to how to inter- 
act with the Chinese administrative system. 

The third area which should be examined 
is the response within China to the resump- 
tion of sovereignty over Hong Kong. The 
Basic Law is the centre piece of the Chinese 
plan for the Hong Kong SAR. Decisions 
regarding the transition are dealt with by the 
Hong Kong and Macao Affairs Office within 
the State Council, in conjunction with a spe- 
cial department of the Ministry of Foreign 
Affairs (Hong Kong. Macao, and Taiwan 
Division). 

The Chinese government, like Hong 
Kong, is short of the legal expertise needed to 
deal with the many complications of 1997. In 
response to this deficiency, some PRC gov- 
ernment bodies have instituted programs to 
expose their officials to the common law. 
This includes the Supreme People's Court 
which is sending selected judges to Britain on 
six-month study visits in order to develop 
proficiency in the common law. Other 
Chinese officials have been sent to Hong 
Kong or British solicitors' firms for short 
term placements. 

The impending return of Hong Kong has 
had the greatest impact in southern China. In 
Guangdong province, particularly in the 
Shenzhen area, there is distinct awareness of 
the importance of understanding Hong Kong 
law. In the last few years, motivation has 
gone beyond a simple desire to know of 
developments in the territory and now con- 
cerns the import of Hong Kong law into 
China. The stunning example of this aware- 
ness is the new Shenzhen Provisional 
Regulations for Limited Joint Stock 
Companies, China's first comprehensive 
company law. These regulations are taken 
almost entirely from Hong Kong company 
law statutes and regulations. If this experi- 
ment is deemed successful, the Shenzhen reg- 
ulations will have a large impact on the 
national company law which is now being 
drafted in Beijing. 

The eventual significance of these bor- 
rowings is far from clear. Chinese translations 



of statutes stripped of associated case law are 
a far cry from any genuine version of Hong 
Kong law. The insertion of these translations 
by the Shenzhen authorities into a legal sys- 
tem based on fundamentally different princi- 
ples and procedures is likely to take Chinese 
law in a direction unexpected on either side 
of the border. 

Fourthly, consideration should also be 
given to the role of private individuals in the 
development of Hong Kong-China legal rela- 
tions. The integration of the economies of 
Hong Kong and southern China has created a 
commercial environment in which business 
enterprises and their legal advisors are in con- 
stant interaction with parties across the bor- 
der. This has not only meant the transfer of 
Hong Kong's more sophisticated techniques 
of drafting legal documents, such as commer- 
cial contracts and intellectual property licens- 
es, but has also involved an education in their 
underlying legal concepts. Without in depth 
research, it is impossible to estimate the sig- 
nificance of these exchanges. In many 
instances, the ineffectiveness of law in China, 
rather than China's progress in legal develop- 
ment, may have more strongly impressed 
Hong Kong parties. The result would be more 
a lesson on the importance of power and 
influence than a lesson in law for the Chinese 
party. 

It is evident that the momentum in both 
public and private legal relations between 
Hong Kong and China is increasing. In the 
1980s, development was slow and hesitant, as 
much a result of inexperience on both sides 
as a consequence of Hong Kong's deep 
ambivalence towards the Mainland. Now the 
sheer necessity of cooperation in the final 
years before 1997 is exerting pressure on 
both sides to find ways to bridge the gap 
between the two legal systems. 

South China Morning Post 

A weekly edition of the South China 
Morning Post has been available in Canada 
for the past six months and is selling very 
well. The edition is published on Thursday 
morning in Hong Kong and then air freighted 
to Canada. It has two sections. News and 
Business, and is available from newsstands 
or by subscription. The annual rate is 
$ 1 24.95, and an introductory subscription is 
$34.95. Orders can be placed through the 
Post at P.O. Box 47, Hong Kong, or Fax: 
852-565-9833. 



14 UPDATE 



New Asia Pacific Centre Inaugurated in Montreal 



Over 300 people attended the official 
inauguration of the Joint Centre for Asia 
Pacific Communication Research (Centre 
conjoint de recherches en communication sur 
l'Asie Pacifique), held on 16 June 1992 at the 
Montreal Botanical Gardens. Funded by the 
Max Bell Foundation, the Centre conjoint is a 
cooperative venture between Concordia 
University and the Universite du Quebec a 
Montreal (UQAM). Four areas will be 
emphasized in the centre's research program: 

1 ) communication technologies and policies; 

2) public development assistance and human 
resource development: 3) intercultural com- 
munication and immigration: and 4) interna- 
tional communication and organizational 
development. 

Prior to the inauguration ceremony, the 
Advisory Board held its first meeting in order 
to discuss the Centre's accomplishments to 
date, its mandate, and the general direction of 
future research. Professor Kong Fah Lee and 
Dr. Minoru Tsunoda co-chaired the meeting. 
The 29 Board members are from diverse 
backgrounds, including representatives from 
the Chinese. Korean, and Japanese communi- 
ties, as well as individuals from the diplomat- 
ic, government, academic, social and eco- 
nomic fields. 

The director of the Botanical Gardens. M. 
Pierre Bourque, welcomed the invited guests 



at the inauguration. Speakers included Claude 
Corbo and Patrick Kenniff. rectors of UQAM 
and Concordia, who stressed the importance 
of this inter-university collaboration and the 
major role of international cooperation in the 
agendas of their two universities. Repre- 
senting the president of the Max Bell 
Foundation. Gail Sinclair emphasized the 
Foundation's commitment to support the 
Centre and promised to follow its develop- 
ment closely. 

Co-directors of the Centre conjoint are 
Elizabeth Morey (Director. Special Projects. 
Concordia). Dr. Claude-Yves Charron 
(Director. Dept. of Communications. 
UQAM). and Dr. Brian Lewis (Chair, Dept. 
of Communication Studies. Concordia). Jules 
Nadeau. who is also on the Advisory Board 
of the Canada and Hong Kong Project, is the 
administrative coordinator of the new Centre. 

Four team research projects are alread} 
under way. including ones funded by the 
Canada-ASEAN (Association of Southeast 
Asian Nations) in Toronto, the Japan 
Foundation, and the Korea Foundation. They 
focus primarily on communication technolo- 
gies and policies in these countries. Ten doc- 
toral students are also associated with the 
Centre. The Centre publishes a newsletter 
both in French and English. For more infor- 
mation, contact: 



Jules Nadeau, coordinator 
Centre conjoint de recherches en 
communication sur l'Asie Pacifique 
Joint Centre for Asia Pacific 
Communication Research 
Universite Concordia 
7141 ouest. rue Sherbrooke 
Pavilion Bryan, BR-418 
Montreal, Quebec 
CANADA H4B 1R6 
Tel: (514) 848-2561 
Fax: (514) 848-2860 




Principal dignitaries at the inauguration 
ceremony: standing, Patrick Kenniff', Gail 
Sinclair. Claude Corbo, Pierre Bourque: 
sitting, the advisory hoard co-directors, 
Minoru Tsunoda and Kong Fall Lee. Photo 
byJ.-A. Martin. Montreal. 



Montreal Documentary on Hong Kong 



Hong Kong '97, an important film pro- 
duced by Via Orient (Quai 32) of Montreal, 
has recently been released on the internation- 
al market. This three-part documentary (2 V2 
hours in total) discusses problems arising 
from the transfer of Hong Kong to Chinese 
sovereignty and examines the condition of 
Chinese immigrants, especially those from 
Hong Kong, in a number of urban centres, 
including Vancouver. Toronto. .Amsterdam. 
Paris, New York. San Francisco, and London. 

As well as cultural events, the film fea- 
tures interviews by well known figures and 
specialists in political, academic, cultural, 
and business fields. These include Prof. 
Graham Johnson (UBC). Louis Leblanc 
(Montreal). Andrea Eng (Vancouver). Danny 
Gaw. James Cleave, and Alan Wong. Several 



members of the Chinese community are also 
interviewed by Jules Nadeau. author of Hong 
Kong 1997: dans la gueule du Dragon rouge, 
recently published in Montreal. 

A Bernard Morin film, this Quebec pro- 
duction cost $1 .5 million and took two years 
to complete, including three months of film- 
ing in fifteen Asian. European and North 
American cities. It was produced by Nicolas 
Valcour and Diane Lambin. Available in both 
French and English, the film is also being 
translated into Cantonese and Mandarin for 
showing in 1993 on Channel 47 in Toronto. 
For more information, please contact the dis- 
tributors: Dominique Valcour, Voie Numero 
Un, Montreal (514-521-1984, ext. 331) or 
Bruce Raymond, Raymond International, 
Toronto (416-340-0130). 



Eligible Bachelors 

Canadian citizenship seems to be the one 
of choice for Hong Kong's youthful elite. 
According to a list compiled by the Hong 
Kong magazine. Mode, five of Hong Kong's 
ten most eligible bachelors hold Canadian 
passports. The top two are the sons of Li Ka- 
shing. Victor and Richard, both Canadian cit- 
izens. Number four on the list is Roger Tse, 
number six is Preston Chan, and number 
seven is Michael Lok. All hold Canadian 
passports. Of the other five on the list, two 
have applied for permanent residence in 
Britain: one has an American passport, one 
an Australian, and one a Singaporean pass- 
port. The list is soon to be shortened: Victor 
Li will many a University of British 
Columbia graduate. 



UPDATE 15 



MEW PROJECT PUBLICATIONS 



Canada and Hong Kong Papers: 

No. 1 : Politics and Society in Hong Kong towards 1997, Charles Burton, ed, 1992. $12 
No. 2: Canada-Hong Kong: Some Legal Considerations, William Angus, ed., 1992. $12 

Research Papers: 

No. 1: Economic Integration of Hong Kong with China in the 1990s, Yun-Wing Sung, 1992. $7 



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5 



CANADA AND HONG KONG UPDATE 



Number 9 



SPRING 1993 



Update on Governor 
Patten's Policy Address 

by Bernard Luk 
York University, Toronto 

When Governor Christopher Patten deliv- 
ered his policy address. "Our Next Five 
Years: The Agenda for Hong Kong." at the 
opening of the 1 992-93 session of the 
Legislative Council last October 7. he made 
two major promises. One was to increase 
government spending to provide better edu- 
cation, health, and welfare services, public 
housing, and environmental protection and to 
maintain law and order. The other was to 
improve political representation of the people 
of Hong Kong with a package of limited con- 
;titutional changes. On both counts, he has 
been severely criticized by the authorities of 
:he People's Republic of China (PRC). 

Financial Reserves 

Hong Kong has a large financial reserve. 
;stimated at some HKS120 billion (nearly 
CDNS20 billion). In spite of low tax rates 
md rather comprehensive social pro- 
grammes, the government habitually reports a 
budgetary surplus. To its embarrassment, in 
nany a year the actual surplus at year-end is 
ligher than that forecast in the budget. 

Update, cont'd page 2 

IN THIS ISSUE: 

Update on Governor Patten's Policy Address 1 

Hong Kong Immigration to Canada 1 

Political Row Over Patten's Reforms 4 

loe Clark Visits Hong Kong 6 

Beijing Update 7 

Regional Variations in Hong Kong 

Immigration 8 

Moratorium on Immigrant Investor 

Program in Manitoba 9 

Political Participation of Chinese-Canadians 

in Toronto 10 

ier 

'1029.5 
16 C36 



Hong Kong Immigration to Canada 

by Diana Lary • UBC, Vancouver 



The number of immigrants from Hong 
Kong who landed in Canada in 1992 was 
significantly higher than the numbers for 
1991; 13.440 more people, whose country 
of last permanent residence was Hong 
Kong, landed in 1992 than in 1991. This 
represents an increase of 37.5%. 

1988 23,293 

1989 19,934 

1990 29.029 

1991 22.357 

1992 35,797 

Many of these people can be assumed to 
have put in their applications to come to 
Canada a year or two before they arrived 
here, thus getting back to the period of high 
anxiety in Hong Kong after Tiananmen. 
However, the high numbers still suggest a 
continuing enthusiasm for emigrating to 
Canada. This becomes clearer if we look at 
the breakdown by class of immigrant. 
Substantial numbers of new immigrants 
appear in the classes with the highest pro- 
cessing priorities - the family class and the 
three business classes (entrepreneur, self- 
employed, and investor): 



Landings in Canada by class, 
CLPR Hong Kong, 1992 



Family class 


13,097 


Convention refugee 


17 


Designated 


13 


Assisted relative 


3,646 


Entrepreneur 


7,604 


Self-employed 


623 


Investor 


4,110 


Retired 


3.468 


Independent 


3.219 



TOTAL 35.797 

[Statistics from Employment and Immigration Canada] 

These classes are all rising in terms of 
new migration, while the independent class 
continues to decline as a proportion of all 
immigration. In 1992 it accounted for only 
9% of all immigration from Hong Kong, 
down from almost 14% in 1991. The 
decline in independents is explained, in 
part, by slow processing time and. in part 
perhaps, by the fact that well qualified 
immigrants can apply in other classes just 
as easily as in the independent class. [See 
p. 8 for statistics on Regional Variations 
in Hong Kong Immigration.] 



Ben Eng: PC Nominee 11 

Winnie Ng: NDP Candidate 12 

Raymond Chan: Liberal Candidate 13 

Hong Kong and the US-China Most 

Favoured Nation Issue 13 

Canada and Hong Kong Sign 

Environment Agreement 14 

The Fallot Hong Kong 14 

CCCHK Selects New Executive Director 14 

The Right Connection: Government of 

Ontario Office in Hong Kong 15 



Canadian Business Award 15 

Publishing in Cantonese 15 

Comparisons Between Hong Kong and 

Canadian University Women 16 

Vancouver Hong Kong Forum Society 18 

Seminar on Political Reform in Hong Kong 18 

"Passages to Canada" 19 

Briefing on Hong Kong Budget 1993 19 

Cantonese Telephone Info Service in Toronto 20 

HK Christian Leader Visits Toronto 20 

Death of Silvia Leung 20 



CANADA AND 


HONG KONG UPDATE 


Editors 


Diana Laiy 




Bernard Luk 




Janet A. Rubinoff 


Illustration & 


IMS Creative 


Design 


Communications 


Contributors 


Phil Calvert 




Sonny Lo 




Christina Mungan 




May Partridge 




Shum Kwok-cheung 




Don Snow 




Hugh X. Tan 




Ahn Truong 



Canada and Hong Kong Update is 
published 3-4 times a year by the 
Canada and Hong Kong Project 
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York University, 4700 Keele St.. 
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Telephone: (416) 736-5784 
Fax:(416)736-5688 

Opinions expressed in this newsjournal 
are those of the author alone. 



CANADA AND HONG KONG PROJECT 

Co-Directors Diana Lary 
Bernard Luk 

Coordinator Janet A. Rubinoff 

Advisory Board David Bond 

Mary Catherine Boyd 
Denise Chong 
Maurice Copithome 
B. Michael Frolic 
John Higginbotham 
T.G. McGee 
Jules Nadeau 
William Saywell 
Wang Gungwu 



We want to thank the Donner Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 

This publication is free. 

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or future issues. 



Update, cont'd from page 1 

Since the late 1970s, the government has 
been under pressure from the public to upgrade 
its social investment and provide better quality 
service in areas related to people's livelihood. 
In the days before there were any elections to 
the legislature, such pressures could be dealt 
with by means of minor concessions. Since 
indirect elections to some of the seats in the 
Legislative Council (Legco) were introduced in 
1985 and direct elections in 1991, popular 
demands could not be put off quite so easily. 

While the elected legislators do not differ 
significantly with the conservative fiscal princi- 
ples of the government and do not advocate any 
policy of deficit financing, they criticize the 
government for taking excessive surpluses, 
holding too large a reserve, and not spending 
more public revenue on the welfare of the peo- 
ple. This has been a recurrent and consensual 
theme in each budget debate during the past 
few years. 

The PRC authorities, on the other hand, 
have been labouring under different assump- 
tions. Since at least 1983-84, during the Sino- 
British negotiations in Beijing on the future of 
Hong Kong, they seem to have assumed that 
the British government would make off with 
the till when they departed Hong Kong in 1997. 
Hence, the Joint Declaration imposes restric- 
tions on the sale of crown land, an important 
source of Hong Kong government revenue, and 
stipulates that the proceeds from such sales be 
shared between the pre- and post- 1997 Hong 
Kong governments. They appear to favour as 
large a reserve as possible to give the post- 1997 
rulers of Hong Kong a comfortable financial 
cushion. 

In the early 1990s, when the new airport 
project became entangled in Sino-British dis- 
agreements, Beijing's suspicions about British 
intentions with Hong Kong's money again 
came to the surface. It was hoped that the 
Memorandum of Understanding (1991) 
between the prime ministers of the two 
sovereign powers would resolve the disagree- 
ments and allow the project to proceed. The 
MOU fixed the minimum amount of financial 
reserves (HK$25 billion or CDN$6 billion) that 
the pre- 1 997 Hong Kong government had to 
hand over to its post- 1997 successor. 

Social Programmes 

The Communist leaders of the PRC were 
not alone in showing concern about how Hong 
Kong taxpayers' money should be spent. When 
the Basic Law was being drafted ( 1986-90). 
many of Beijing's allies among ultra-conserva- 
tive business leaders in Hong Kong vehemently 



attacked many social programmes put in place 
by British colonial administrators since the 
1970s and demanded clauses against a "free 
lunch" in the Basic Law. Such sentiments did 
not represent the consensus in Hong Kong, not 
even within business circles. Nevertheless, many 
of these provisions were adopted by the Beijing 
drafters and written into the mini-constitution. 

Given such a backdrop, it should not be sur- 
prising that Governor Chris Patten's proposals 
to improve social programmes, which were put 
into operational terms in the latest government 
budget, should come under attack from the 
North. 

1993 Hong Kong Budget 

Financial Secretary Hamish Macleod, in his 
Hong Kong Budget 1993-94 tabled in the 
Legislative Council on March 3, reported a 5% 
real growth of the GDP in 1992, with unem- 
ployment at around 2% and inflation at 9.4%. 
The government surplus was estimated to be 
around HKS20 billion (CDNS3.2 billion). He 
forecast comparable rates of GDP growth and 
inflation in 1993, and expected the GDP per 
capita to reach HK$146,700 (US$18,800 or 
CDN$23,660) by the end of the year, surpass- 
ing that of Britain. 

On the basis of this forecast, the govern- 
ment proposed to cut taxes and increase social 
spending. The maximum rate of salary tax 
would remain at 15%, but there would be 
increases in the personal allowances, dependent 
child and dependent aged parent allowances, 
and widening of tax bands. Billions of dollars 
would be spent on new programmes, or specific 
improvements of existing programmes, in edu- 
cation, housing, environmental protection, 
health and welfare, sports and performing arts, 
trade and industry, tourism, and highways. 
Total government expenditure would amount to 
HK$ 132.5 billion (CDNS21 billion), an 
increase of HKS17.4 billion over that of 1992- 
93. Many of the new programmes, it should be 
noted, do not commit the government to long- 
term recurrent expenditures. 

Even with the increased spending, which is 
expected to leave a budget deficit of HKS3.4 
billion for 1993-94 (to be taken from the 
reserves), total public expenditure would repre- 
sent only 18.5% of GDP. The government 
remains a small spender by international stan- 
dards, and it is committed to maintaining 
reserves well above the minimum level 
required in the Memorandum of Understanding. 

The tax cuts and improvements in social 
programmes were generally well received in 
the community, although there has been con- 



2 UPDATE 



rem in some quarters aboul the unaccustomed 
practice of dipping into the sa\ ings account. 
Specific provisions in the budget, however, 
attracted considerable criticism from various 
quarters, particularly with regard to the mecha- 
nisms, if not the amounts, of expenditure on 
housing, job training, welfare allotments, and 
soon. 

Nevertheless, legislators agreed that this was 
a much better budget than in previous years, 
even though many of them remained dissatis 
fied. On March 3 1 . the last day before the new 
financial year, the budget was passed, without 
significant change, by the Legislative Council. 
It was supported by the more moderate conser- 
vative members (mostly appointed) arid 
opposed by one elected member, while the 
largest bloc of elected members, the pro- 
democracy United Democrats of Hong Kong, 
abstained. Ironically, this is diametrically oppo- 
site to the positions of the various blocs on 
Patten*s other proposal, the one on constitution- 
al reforms. 

The harshest and most categorical attack on 
the budget came from the North. Intermittently 
since October, the New China News Agency 
and the Hong Kong and Macau Office of the 
State Council have been accusing Patten of cur- 
rying favour with the people of Hong Kong by- 
mortgaging the future of the post- 1997 govern- 
ment, of Western-style pork barrel politics, and 
of spending Hong Kong money to benefit 
Britain. The latest attack came in the form of a 
seminar paper by two senior policy analysts in 
the State Council in Beijing. Delivered at a con- 
ference on the Hong Kong-Macau economy 
held in early April, the paper accuses Patten and 
Macleod of fiscal irresponsibility and inducing 
inflation. 

The budget is a strictly domestic matter and 
does not straddle 1997. However much Chinese 
leaders in Beijing may dislike it, they could not 
stop the popular measures from being adopted in 
Hong Kong. Thus, Patten has been able to live 
up to this promise without too much difficulty, 
but not so with the constitutional proposals. 

Political Reforms 

Beijing's heavy handed and vociferous 
opposition to Patten's proposals for limited 
increases to popular representation in the Hong 
Kong legislature has made headlines around the 
world several times during the past five months. 
It is well covered elsewhere in this issue of the 
Update (see pp. 4-7) and need not be detailed 
here. However, it may be useful to explain some 
of the jargon, mostly coined in the PRC. which 
has been used quite extensively in the debate. 



Since the earliest stages of the Sino-British 
negotiations in 1982, Beijing has consistently 
rejected the "three-legged stool" i.e.. talks 
between three parties: China. Britain, and 
Hong Kong. They have insisted that any nego- 
tiations must be between the two sovereign 
powers onlj and that Hong Kong people must 
not be allowed a voice at the table or a say 
after the deal is struck. That position has been 
maintained even after legislative polls have 
produced popularly elected representatives of 
the people of Hong Kong. Indeed, it has been 
reinforced, not least because most of the elect- 
ed legislators have condemned the Tiananmen 
massacre. Hence. Beijing's refusal to recog- 
nize the Legislative Council (Legco), to allow 
ethnic Chinese officials of the Hong Kong 
government to participate in formal negotia- 
tions, or permit Legco to have a real vote after 
any Sino-British negotiation on Patten's pro- 
posals. Such refusals have stalled the suggest- 
ed talks. 

After the Sino-British Joint Declaration on 
the future of Hong Kong was concluded in 
1985 and when the transition period for the 
handing over of sovereign authority from 
Britain to China began, it became apparent to 
all concerned parties that in the interest of con- 
tinuity and stability, it w ould be beneficial for 
the legislature, if not the executive, of Hong 
Kong to straddle 1997. This is the idea of the 
"through train." which would allow legislators 
elected in 1995 to continue to serve until 1999. 
albeit in an assembly under a different consti- 
tution (i.e.. the Basic Law). The "through 
train" w ould be acceptable to PRC authorities, 
so long as elected legislators that they disliked 
could not remain aboard. Indeed, if the British 
authorities would only cooperate in the name 
of continuity to disqualify certain types of per- 
sons from running for the Legislative Council 
in 1995, the issue could be used to install a 
legislature entirely to Beijing's liking, two 
years before the transfer of sovereignty. 

Continuity and stability are favoured by 
community consensus, across political lines, 
but not at any cost. Where the British were 
concerned, many senior officials had been pre- 
pared to comply with Beijing's wishes to the 
extent of restricting democratic development 
in Hong Kong. However, they were not ready- 
to go further and dismantle the rule of law by, 
say, disbanding legally incorporated pro- 
democracy groups. They were also wary of the 
political risk of disenfranchising popular 
groups and leaders that enjoyed broad, if 
loosely organized, support in the community. 



So the issue oi the "ihrough train" remained 
fuzzy, Beijing was hopeful, before Patten 
appeared on the scene, that certain British offi- 
cials would work to gerrymander the 1995 elec- 
tions to gel rid of pro-democracy groups like 
the 1 nited Democrats of Hong Kong. 'ITiat was 
part of the reason why electoral provisions for 
1995-97 were left vague in the Basic law and 
subsequent Sino-British discussions on the 
"through train." 

What Chris Patten has done is to propose to 
till in that grey area in a way that is contrary to 
Beijing's expectation of complete control. 
Under the Basic Law, the post- 1997 chief exec- 
utive, as well as substantial portions of the leg- 
islature, would be appointed, directly or indi- 
rectly, by Beijing. Even if all of Patten's propos- 
als were realized, there would only be a viable 
opposition in the legislature, never a popularly 
elected government. 

However, experience since the first legisla- 
tive elections has shown, as in the case of the 
government budget, that even a democratic 
minority bloc in the legislature, with no 
prospect of gaining pow er. could open up the 
political process very considerably to public 
scrutiny and influences of the popular will. 
This. Beijing and its ultra-conservative allies in 
Hong Kong clearly do not want. 

If there is to be no "through train." Beijing 
w ould set up a "second stove" (distinct from the 
"British stove") to cook the feast of the transfer 
of sovereignty. This again is an idea that has 
been discussed for years. It means for a 
preparatory committee to be set up one or tw o 
years before 1997, to hold consultations and 
elections that would produce the office holders 
of the post- 1997 government. The committee 
would likely consist of a few hundred members 
appointed by Beijing, some from Hong Kong 
and some from the PRC. and would meet and 
operate in China. 

During the current squabble, the "second 
stove" was first brought up as a possible last 
resort by Beijing officials in October. However, 
they have remained non-committal, at least in 
public. In recent months, the most vocal propo- 
nents for an immediate set up of a "second 
stove" have been pro-Beijing elements in Hong 
Kong who. in spite of high personal profiles, 
would enjoy little access to power in a 
"through train" arrangement. Most other politi- 
cally active persons in Hong Kong or in the 
PRC, of whatever political stnpe. remain cau- 
tious about the idea. 

During the last week of March, the National 
People's Congress, then in session in Beijing, 
adopted a resolution to set up the mechanism to 
Update, cont'd page 4 



UPDATE 3 



Update, cont'd from page 3 

appoint a committee to prepare for the transfer 
of sovereignty over Hong Kong. However, the 
resolution was couched in very vague and gen- 
eral terms, and the details were left to be decided 
bj the Standing Committee of the Congress (i.e., 
the parliament of the PRC). While this might 
mean that the first step has been taken towards a 
"second stove," it could also be no more than a 
gesture to keep alive the threat of such a move. 
It is a far cry from any "shadow government." 

Meanwhile, the New China News Agency 
and the Hong Kong and Macau Office, two 
PRC authorities that do not always see eye to 
eye, jointly appointed a second group of Hong 
Kong Affairs Advisers, and promised that there 
would be more appointments to come. (The first 
group were appointed last year.) The two groups 
total nearly a hundred prominent individuals 
from different walks of life in Hong Kong. 
Some one-third of them are big business, and 
none has spoken out in support of greater 
democracy in Hong Kong. The appointments 
are part of the united front strategy of the 
Chinese Communist Party and have been criti- 
cized in the community as grossly unrepresenta- 
tive. It is unclear on what the Advisers are sup- 
posed to advise, or how their opinions would be 
channelled or received. However, if there is to 
be a "second stove," the Advisers could well 
form the more open and public part of it. 

In spite of the political fireworks, life goes 
on. The stock market continues to trade in 



healthy volumes day after day, and the Hang 
Seng Index has regained all the lost ground 
since its precipitous fall in the early winter. The 
quality of life for many people would improve 
somewhat under the new budget. For all the flak 
from the North. Patten's constitutional proposals 
still have more supporters than opponents in the 
community, including business people. For 
instance, one of the most respected figures in the 
business community, Mr. Lam Hang-chi, editor 
of the Chinese-language daily newspaper. The 
Hong Kong Economic Journal (the Shun Po 
Daily News), in an intermittent series of leading 
articles since October, has been very consistent 
in expressing his support for the proposals. He 
sees these changes as the last chance to maintain 
Hong Kong's institutional viability and to realize 
the "one country, two systems" formula. 

While some pro-Beijing elements have been 
advocating radical moves like mass demonstra- 
tions in Hong Kong against Patten, such sugges- 
tions have not been endorsed by the PRC 
authorities or by the most prominent pro-Beijing 
Hong Kong politicians. The latter do not want to 
take any de-stabilizing actions and also might 
not be very sure of their own mass support. On 
the other side of the spectrum, pro-democracy 
groups also refrain from demonstrations for fear 
of provoking Beijing or of being disrupted by 
agents provocateurs. So the dispute remains a 
verbal one. 



By early April, the UK, US. and Canadian 
governments had all reiterated their support for 
Patten's constitutional proposals. Patten himself, 
was in Europe and Britain for discussions and 
spelled out three conditions for talks with the 
PRC: 1 ) that Beijing must not just attack his 
proposals but must make counter-proposals; 
2 ) that the arrangements for the 1 995 elections 
must be fain and 3 ) that any "through train" ar- 
rangement must not eject any of its passengers. 

The consensus of the community is clearly in 
favour of renewed negotiations between China 
and Britain to resolve the differences, although 
most Hong Kong people would find it difficult 
to stomach another secret deal about their future 
in which they would have no say. It remains to 
be seen whether the constitutional proposals, 
gazetted in March despite PRC objections, will 
be tabled in the Legislative Council in late April 
or early May. 



At press time, the UK 
and PRC governments 
announced they will begin 
negotiations, starting 
April 22, on arrangements 
for Hong Kong's 1994 and 
1995 elections. 



Political Row Over Patten's Reforms 



Since Governor Chris Patten advanced his 
political reforms package in his policy speech 
7 October 1992, China launched a series of 
attacks that recently have become even more 
vituperative. By threatening to refuse to hon- 
our contracts after 1997 that were not made 
with PRC approval, China has also carried its 
political dispute with Britain into the eco- 
nomic arena. Beijing's strategy towards these 
constitutional reforms appears to place politi- 
cal concerns at the top of its agenda, even 
though these threats may harm the confidence 
and economic development of Hong Kong. 

On 27 November 1992, the Chinese senior 
representative on the Joint Liaison Group 
(JLG). Gou Fengmin. delivered a stern warn- 
ing that China might not honour the contract 
for developing Container Terminal Nine 
(CT9) after 1997 because it had not been put 



fry Shum Kwok-cheung 

Hong Kong 

to the JLG for discussion. Three days later 
the Chinese State Council's Hong Kong and 
Macau Affairs Office raised the Sino-British 
dispute to a new intensity by issuing a hard- 
line statement that the validity of all con- 
tracts, leases, and agreements signed or rati- 
fied by the British Hong Kong administration 
without China's approval would not be hon- 
oured after 30 June 1997. This stern warning 
was China's attempt to transform the continu- 
ing war of words into action. 

On December 1 8 the New China News 
Agency in Beijing publicly accused the 
Jardine Group of unscrupulously making 
money in Hong Kong and China and using 
methods to pursue secret political ends by 
disturbing prosperity and stability in Hong 
Kong during the transitional period. This 
move was seen by the Hong Kong press as 



China's warning to those British firms which 
supported Patten's political reform package. 
During an interview with a Hong Kong tele- 
vision station on 3 January 1993, Lu Ping, 
director of the Hong Kong and Macau Affairs 
Office, threatened to set up a consultative 
committee to advise Beijing on transitional 
matters. Such a body was regarded as a 
"shadow government," and it would hamper 
the authority of the Hong Kong government. 
However, there has been considerable crit- 
icism of China's hardline position by Hong 
Kong's legal professionals. Prof. Raymond 
Wacks. head of Hong Kong University's 
Faculty of Law, pointed out that China's 
threat to invalidate contracts and agreements 
after 1997 would probably violate Article 160 
of the Basic Law. It stipulates that, "Docu- 
ments, certificates, contracts, and rights and 



4 UPDATE 



obligations valid under the laws previously in 
force in Hong Kong shall continue to be valid 
and recognized and protected by the Hong 
Kong Special Administrative Region, provid- 
ed the> do not contravene this Law" [South 
( luihi Morning Post (SCMP). 1 December 
1992). Moreover, the influential Hong Kong 
Bar Association issued a comment refuting 
the PRC statement on the validity of contracts 
and agreements spanning 1997. including 
CT9 (Container Terminal). The Association 
argued that since the land required for CT9 
construction was already approved and grant- 
ed by the Sino-British Land Commission, 
China's threats amounted to an abuse of the 
concept of sovereignty and a contradiction of 
the letter and spirit of the Joint Declaration 
[SCMP. 23 December 1992]. 

Nevertheless, Beijing's continued attacks 
against Patten's proposals have sapped Hong 
Kong's economy and confidence. For exam- 
ple, on 4 December, in response to the con- 
fused political situation, the Hang Seng index 
dropped to 4.978, down 433 points. This was 
the most serious fall in its three-week collapse 
from 12 November 1992 when the index 
reached a high of 6.447. During that period, 
the panic "crash" of the stock market wiped 
more than HKS300 billion off share prices. 

Opinion surveys in late December also 
showed that the confidence of Hong Kong 
people had deteriorated largely because of 
Sino-British political tensions. An annual 
outlook survey for Hong Kong Standard indi- 
cated that confidence in the future of Hong 
Kong reached its lowest since 1989. Only 
15% of 545 respondents expected to be better 
off in 1993, significantly lower than the 20% 
at the end of 1989, six months after the June 
4 Tiananmen crackdown. These results com- 
pared with 28% in 1991, 22% in 1990, and 
31% in 1988. 

Another poll was conducted by Survey 
Research Hong Kong for the South China 
Morning Post and Ming Pao. This tri-month- 
ly survey, conducted since 1984, indicated 
the economic and political confidence index 
had plummeted to its lowest point in a year. 
The number of people expressing confidence 
in the territory's future declined to 67% from 
76% in the previous survey, three months 
earlier. There was a split of opinion over 
people's preferences for more democracy at 
the expense of the territory's stability and 
prosperity. 



As public opinion on Patten's constitu- 
tional proposals fluctuated, there was also 
some controversy about the results of various 
polls. In general, due to Beijing's vociferous 
opposition, public support of Patten declined 
during November and December, from a high 
point after his policy speech on October 7. 
From January to February, the decline stabi- 
lized and public support for Patten's propos- 
als began to increase. [See Table 1 and 3.] 

Table 1: Should political reforms go ahead even 
if there is no through train? 



Date 


Oct. 8 Nov.2 Dec.23 


Yes 
No 

Unsure 


56% 34% 34% 
19% 48% 49% 
25% 18% 17% 


Source: HK Polling and Business Research for SCMP 

Table 2: Satisfaction with Governor's Policy 
Speech 


Date 


7-8 10-11 15-16 19-20 1-2 
Oct. Nov. Dec. Jan. Feb. 



Satisfied 33.5% 39.8% 30.5% 29.9% 31.1% 

Neutral 6.2% 6.0% 9.6% 9.6% 10.0% 

Dissatisfied 3.9% 8.8% 20.8% 15.1% 13.1% 

Don't Know 56.4% 45.5% 39.1% 45.5% 45.9% 



Source: Social Research Centre. Univ. of Hong Kong 
Table 3. Popularity of Patten Rating 


Date 


7-8 
Oct. 


10-11 
Nov. 


15-16 
Dec. 


19-20 
Jan. 


1-2 
Feb. 


Rating 


65.5% 


64.1% 


53.3% 


56.9% 


58.4% 



Source: Social Research Centre. Univ. of Hong Kong 

However, despite pressure from China 
and fluctuating public opinion. Patten 
retained the support of the Legislative 
Council (Legco). On November 1 1 Legco 
voted 32 to 21 in favour of a motion to sup- 
port Patten's political package. The Finance 
Committee of Legco voted 27-25 on 
November 27 to permit the Government's $9 
billion airport site preparation contract to go 
forward, despite China's threat not to honour 
the contract before an agreement on the over- 
all financing of the airport plan was secured. 
On 13 January 1993, Legco voted 35 to 2, 
with 1 5 abstentions, against the motion by 
pro-China legislator. Philip Wong Yu-hong. 
urging the Government not to introduce 
Patten's constitutional package. 

Some political observers in Hong Kong 
attribute China's obstinate attitude towards 
Patten's relatively mild reforms to Beijing's 
"conspiracy theory." PRC leaders regard 
Patten's democratization proposals as a care- 
fully planned strategy devised by Western 



capitalist societies - the so-called "anti-China 
chorus" - to exert pressure on China, using 
Hong Kong as a potential bridgehead. 

In this vein. Lu Ping argued that there had 
been length) consultations with Britain 
before an agreement was reached and the 
Basic Law approved by China's National 
People's Congress. The sudden change in 
British policy was nothing more than "setting 
a trap" for China. Thus. Mr. Lu stressed, 
"The crux of the matter was not whether one 
wanted democracy or not but whether one 
needed to keep one's word" [SCMP. 23 
December 1992, p. 1]. Chinese leaders reiter- 
ated that the only solution to this dispute is 
for Hong Kong and British authorities to 
return to the track of agreements already 
reached by China and the U.K. 

Although China's position is understand- 
able, Beijing has neglected the fact that Hong 
Kong people are eager to gain more democra- 
cy and feel that the Basic law is too conserva- 
tive. There is the possibility that China's hard 
stance may defeat Patten's proposals. Even 
though Hong Kong people may eventually 
accept this reality, in the long run the rela- 
tionship between China and Hong Kong will 
deteriorate. In fact, allowing some democrat- 
ic reforms in the territory would enhance the 
confidence of Hong Kong's residents and 
improve the relationship between China and 
the territory. 

The political tension surrounding Patten's 
political reform package became even more 
complicated and sensitive in February and 
March. February, in particular, was a critical 
period for the Sino-British dispute since 
Governor Patten had made a pledge to draft 
legislation and publish his proposals for pub- 
lic consideration by the end of the month. 
However, while the Executive Council 
(Exco) had approved Patten's reform propos- 
als on February 9, there was grow ing specu- 
lation that talks would resume between China 
and Britain. 

Amid grow ing calls to delay the legisla- 
ture's debate over the political reform bill, 
Exco decided to postpone its publication. 
This move was seen as a concession to China 
in hopes that Sino-British talks might soon 
resume and help break the impasse. On 
March 1 1 . Britain and China came to a final 
showdown since Patten indicated it was 
impossible to delay further the gazetting of 
the bill for his political package. It had 
already been deferred four times from his 

Political Row. cont'd page 6 



UPDATE 5 



Political Row, cont'd from page 5 

pledged date of publication in order to facili- 
tate the resumption of discussions. However, 
since neither side could reach a compromise, 
hopes of immediate talks were shattered. On 
the following day, March 12, Patten decided 
to gazette his constitutional reform bill with- 
out China's blessing. 

Beijing's response was immediate and 
furious. At the opening of the National 
People's Congress, Chinese Premier Li Peng 
severely attacked Patten's decision to publish 
the bill. This was the first time a Chinese pre- 
mier had publicly criticized the British 
Government in his work report. At a press 
conference, Lu Ping declared that Patten 
would be condemned in Hong Kong's history 
as "a man of guilt," and he announced 
Beijing would have to make its own arrange- 
ment for the post- 1997 government and legis- 
lature, the so-called "second stove." The 
British Government reiterated its support of 
Governor Patten and complained that China's 
stance was "too tough." 

Public opinion in Hong Kong was further 
divided in March over the failure of the 
resumplion of Sino-British talks. Recent sur- 
veys demonstrate the increasing prevalence 
of mixed feelings and even cynicism among 
Hong Kong people. According to a poll com- 
missioned by the South China Morning Post, 
35.3% of respondents supported Patten's 



decision to publish his electoral reform bill, 
while 32.8% opposed and 3 1 .8% were unde- 
cided [SCMP, 20 March 1993]. When asked 
which side should make the first concession. 
27.4% opted for Governor Patten. 2 1 .9% for 
China, and 29.9% for both sides. However, it 
was clear that Hong Kong people did not 
want secret talks - with 68.15% against and 
only 1 5.7% in favour. 

By the end of March the gap between 
opinions pro and con Patten's reforms was 
significantly closer. A survey, conducted by 
the Social Sciences Research Centre of Hong 
Kong University, indicated that only 26.8% 
of respondents supported Patten's proposals 
while 18.6% were opposed. His margin of 
support had been reduced to 8.2%, the nar- 
rowest ever reported since December of last 
year (see Table 4). 

Both China and Britain accused each 
other of insincerity. Neither side appeared 
able to offer concessions that would allow 
talks to proceed. This situation reflected fun- 
damental cleavages between China and 
Britain which made any concessions difficult. 
For Beijing, a prerequisite for resuming talks 
was Patten's suspension of publication of the 
bill and the withdrawal of his political 
reforms. 



Table 4: 


Support for Reform Package (%) 










Date 


8-10 Dec. 


28-30 Dec. 


11-12 Jan. 


27-28 Jan. 


8-10 Feb. 


8 Mar. 


24-25 Mar. 


Support 


35.9 


36.0 


29.4 


38.5 


33.2 


37.8 


26.8 


Oppose 


2d') 


20.0 


17.9 


14.4 


15.6 


14.9 


18.6 


Margin* 


15 


16 


11.5 


24 1 


17.6 


22.9 


8.2 



*Bet. Support-Oppose 

Source: Compiled from information supplied by Public Opinion Programme (POP). 

Social Sciences Research Centre, University of Hong Kong 



On his part. Governor Patten appeared to 
have no choice because to have delayed the 
bill further without any clear commitment 
from China on resuming negotiations would 
have undermined his credibility and authority 
to govern Hong Kong for the rest of his 
tenure. Therefore, the British Government 
insisted that there should be no prerequisite 
for the resumption of talks. 

The role of Legco in preparing the 1994- 
95 electoral plans also emerged as a stum- 
bling block to Sino-British negotiations. 
China outright rejected the "three-legged 
stool" arrangement - that the Hong Kong leg- 
islature be allowed a say on matters in con- 
junction with the two sovereign powers. 
Beijing maintained that only China and 
Britain and no other third party should decide 
on the political reforms. Britain insisted that 
to prohibit Legco participation was unpalat- 
able as any matters involving the legislative 
process would require the approval of the 
Hong Kong Legislative Council. 

China also strongly opposed any Hong 
Kong officials, especially Patten, as formal 
team members. However, for the British, by- 
passing the Hong Kong government would 
violate conventional arrangements since the 
Joint Declaration - that any talks involving 
the territory's affairs would include Hong 
Kong officials. China's reluctance to allow 
Hong Kong representation on the British 
negotiating team was the immediate reason 
for the failure to resume discussions. 

Although Britain maintains that the "door 
is still open." the government is not opti- 
mistic that talks will soon resume because of 
these fundamental differences. Nevertheless, 
the post-transition period will be very diffi- 
cult for Hong Kong without Sino-British 
cooperation. 



Joe Clark Addresses Canadian Chamber of Commerce in Hong Kong 



On March 30. Constitutional Affairs 
Minister and former Prime Minister, the Rt. 
Hon. Joe Clark addressed the Canadian 
Chamber of Commerce in Hong Kong on the 
topic, "Canada, China, and Hong Kong." In 
his luncheon address, Clark stressed that sup- 
port for Governor Chris Patten's constitutional 
reform proposals "is the key to prosperity" in 
Hong Kong. He maintained that Canada wants 
the territory to remain an "open society after 
its return to Chinese sovereignty in 1997" 
[Toronto Star, 31 March 1993, p. 16]. 



His speech outlined Canada's political and 
economic interests in China and Hong Kong. 
With regard to the Sino-British dispute over 
democratic reforms, he stressed, "We 
are. ..interested in Hong Kong, China and 
Britain working out among themselves an 
agreed arrangement for a smooth transition in 
1997, one that keeps Hong Kong's prosperity 
and identity and stability." 

Clark visited Hong Kong after a week's 
stay in China where he met with leaders in 
Beijing, including Prime Minister Li Peng. 
Clark is the most senior Canadian government 



official to visit China since the June 4th 
Tianamen massacre. He also attended the 
Williamsburg Conference, sponsored by the 
Asia Society, in the southern Chinese city of 
Zhongshan. Mr. Clark met with Governor 
Patten in Hong Kong and discussed Canada's 
views on the future of the territory and his 
recent talks with PRC leaders. 

Apart from Mr. Clark, Minister of External 
Affairs Barbara McDougal also had planned a 
visit to Hong Kong in early March. However, 
the trip was cancelled after Prime Minister 
Brian Mulronery announced his resignation. 



6 UPDATE 



Beijing Update 

by Christina Mungan 
Beijing 



As evinced in the official Chinese press 
(the China Daily and People's Daily), rela- 
tions between the Chinese and Hong Kong 
governments remained frosty this winter, 
with few signs of a "thaw" this spring. From 
November through March, press coverage of 
the constitutional proposals of Governor 
Chris Patten was very hostile. The proposals 
to develop Hong Kong's representative insti- 
tutions were portrayed in the Chinese media 
as a wanton rejection of the Basic Law and a 
scheme to build up Patten's personal reputa- 
tion at the expense of the economic stability. 
unity, and lasting happiness of Hong Kong. 

However, the seeming intransigence with 
which officials at every level of the Chinese 
government announced that they would not 
discuss the matter until Patten renounced his 
"antagonistic attitude" [China Daily. Dec. 
12] covered real shifts in approach. A low 
was reached in early December when 
Beijing threatened to repudiate after 1 997 
not only any changes to the Basic Law but 
also any debts or business contracts under- 
taken by the Hong Kong Government, with- 
out China's approval. The latter was in 
response to the "unilateral" award in 
November of contracts related to Hong 
Kong's new airport construction. 

The day after condemning the awards, 
both the People's Daily and China Daily 
warned on December 1 that "Britain's 
administrative power over Hong Kong will 
terminate on June 30, 1997." Lest readers 
miss the point, the articles continued: "con- 
tracts, leases and agreements signed and rat- 
ified by the Hong Kong British Government 
that are not approved by the Chinese side 
will be invalid after June 30, 1997." 

While the press invective over airport 
contracts subsided, less than two weeks later 
China Daily - though not the People's Daily 
- suggested that the Basic Law, like the air- 
port and container port-related contracts, 
might simply be repudiated after 1997. On 
its front page, 1 1 December 1992, China 



Daily warned, "If the British Government is 
bent on its own way by refusing to return to 
consultation and co-operation as stipulated 
in the Joint Declaration, then China will 
have no alternative but start (sic) all over 
again after 1997." In an otherwise identical 
article, this line did not appear in the 
People's Daily 

At the same time, what the Chinese 
media did not report revealed almost as 
much about the government's attitude. The 
press failed to mention that Beijing was 
stonewalling Patten's requests to return to 
negotiations or offer alternative proposals. 
In fact. Chinese readers, relying solely on 
the official press, would have had no idea 
what points of the Basic Law Patten pro- 
posed to clarify by his democratic reforms. 

After early December however, the 
Chinese Government adopted a different 
tactic, and the carrot replaced the stick in 
Beijing's press campaign against the propos- 
als. A succession of articles emphasized 
Hong Kong's narrow escape from a world- 
wide recession thanks to its "gradual eco- 
nomic integration with the Chinese main- 
land [China Daily. Jan. 6 & Feb. 12]. The 
head of the New China News Agency in 
Hong Kong and Singapore leader Lee Kuan 
Yew were quoted as saying that a stable 
business climate would benefit Hong 
Kongers more that the illusory promises 
held out by Patten with his "ulterior 
motives." 

By the end of February, China had also 
adopted a more conciliatory approach on 
other matters. The Government compro- 
mised on a sore point with Hong Kong trav- 
ellers and eliminated its new random AIDS 
testing at the border. On March 5. Beijing 
even seemed to back down from the earlier 
demand that Patten drop his political pro- 
posals before talks could resume. 

In a front page story in the People's 
Daily. Li Peng told representatives of Hong 
Kong's General Chamber of Commerce. 



"Even though the Hong Kong governor's 
political reform plan brought about difficul- 
ties for Sino-British co-operation ... the 
Chinese side holds that the two sides should 
'sit down and talk.'" In another article the 
same day in China Daily, a Foreign Ministry 
spokesman "declined to comment on specu- 
lations that China is negotiating with 
Britain" over Patten's package but added 
that "China always calls for consultation and 
co-operation between the two sides." 

The next day. along with other cheery 
news for the Olympic Inquiry Committee 
due to arrive in Beijing, a small article on 
the front page of China Daily quoted Patten 
informing Legco that "exchanges" in 
Beijing had already resolved most points of 
dispute in preparation for formal Sino- 
British talks. The People's Daily never con- 
firmed that any exchanges had occurred, 
which might have been enough in itself to 
warn of a chill blast to come. 

Two days later China's major newspapers 
renewed attack on Hong Kong's airport pro- 
ject. On March 14 and 15, the People's 
Daily and China Daily, respectively, devoted 
nearly a full page - out of only eight pages 
available - to lambasting Patten for demand- 
ing the inclusion of Hong Kong officials in 
any Sino-British talks. 

In one memorable phrasing, when Patten 
decided to publish his reform package over 
Chinese protest, the China Daily [March 16] 
denounced the move as indicating "that the 
British side is without sincerity in approach- 
ing the talks on the issue, prompting people 
to question its creditability [sic] in its hon- 
ouring of international commitments." 
Ironically, three days later it was the Chinese 
who warned that Sino-British trade links 
might be imperiled by the dispute. As March 
drew to a close, the National People's 
Congress made a point of reiterating opposi- 
tion to Patten's proposals on a daily basis, 
and improved relations with Britain seemed 
a more distant prospect than ever. 



UPDATE 7 



Regional Variations in Hong Kong Immigration 



When potential immigrants apply to come to Canada, they state 
their intended destination in Canada. Immigrants who are accepted are 
not required to stay in the stated destination after they arrive, unless 
their application is conditional on doing so, as with certain categories 
of employment. This lack of a firm requirement means that the state- 
ment of intended destination is not an absolutely accurate indication of 
actual settlement. However, as the only indication immigrants give of 
where they may settle, it is the best available figure for the distribution 
of immigrants within Canada. 

Over the past four years, the largest proportion of immigrants from 
Hong Kong has been destined for Ontario, with the second place con- 
sistently held by British Columbia: 



by Diana Lary 
UBC, Vancouver 

immigration to Ontario. The slight decline in the proportion going to 
Toronto is probably explained by a trend towards settlement in places 
immediately adjacent to Metro Toronto. 

There is an even more pronounced pattern of urban concentration 
in British Columbia. In 1988,4,965 of 5,188 landings in British 
Columbia were in Vancouver (95%); in 1989, 4,661 of 4,849 (96%); 
and in 1990. 7,471 of 7,660 (97.5%). In 1991 the figures for 
Vancouver were 6,054 (96%), and in 1992, 8,664, or 95%. 

Permanent residents admitted from Hong Kong, by urban area 



Major provincial destinations, immigrants CLPR Hong Kong 



Ontario 



B.C. 



Quebec 



1988 


58% 


22% 


10% 


1989 


54% 


24% 


m 


1990 


55% 


26% 


9% 


1991 


51' , 


28% 


8% 


1992 


47', 


2591 


8% 



There has been a relative decline in the proportion of people intend- 
ing to go to Ontario and a rise in the proportion going to Quebec, while 
the proportions going to British Columbia and Alberta have been quite 
stable. 

Immigrants admitted from Hong Kong, by province' 





1988 


1989 


1990 


1991 


1992 


Alberta 


2257 


1623 


2535 


1830 


2960 


B.C. 


5188 


4849 


7660 


6309 


9162 


Manitoba 


409 


267 


340 


314 


405 


New Brunswick 


33 


41 


39 


52 


70 


Newfoundland 


30 


28 


17 


14 


43 


NWT 


7 


9 


17 


18 


4 


Nova Scotia 


63 


71 


95 


77 


142 


Ontario 


13527 


10812 


16032 


11222 


16967 


PEI 


5 


3 


12 


4 


13 


Quebec 


1380 


1912 


1939 


2310 


5532 


Saskatchewan 


390 


319 


342 


207 


492 


Yukon 


4 





1 





7 


Total 


23293 


19934 


29029 


22357 


35797 



The actual numbers involved tell a slightly different story. While the 
numbers for Alberta. Manitoba, and Saskatchewan have stayed in rough- 
ly the same range over the past five years, those for Ontario and British 
Columbia have swung quite dramatically. The latter have been influ- 
enced by the overall size of the migration in any particular year. The only 
province with consistent growth in the numbers involved is Quebec. 

Within each province, movement of immigrants is overwhelmingly 
to the major cities. In 1 988, Toronto accounted for 87% of Hong Kong 
immigrants to Ontario, in 1 989 and 1 990 for 86%. In 1 99 1 , 8, 1 97 of the 
immigrants who landed in Ontario settled in Toronto, or 73%. In 1992 
the parallel figures were: Toronto, 1 1 ,442, or 68% of all Hong Kong 

' These statistics are supplied by the Immigration Statistics Division, 
Employment and Immigration Canada. Slight variations in some of the 
statistics published in earlier Updates reflect minor corrections. 





1988 


1989 


1990 


1991 


1992 


Calgary 


1078 


7411 


302 


780 


1424 


Edmonton 


1055 


791 


2960 


904 


1274 


Halifax 


52 


63 


77 


62 


123 


Montreal 


1347 


1837 


1881 


2224 


5416 


Ottawa 


339 


228 


325 


310 


453 


Quebec 


2 


15 


18 


15 


14 


Regina 


188 


140 


161 


89 


263 


Saskatoon 


91 


54 


115 


80 


98 


Toronto 


11780 


9329 


13806 


8197 


11442 


Vancouver 


4965 


4661 


7471 


6054 


8664 


Winnipeg 


386 


225 


311 


302 


3X3 


Other 


2010 


1850 


2448 


6224 


11752 



Patterns of immigration across the country vary quite strongly by 
class of immigration. There are marked concentrations of certain class- 
es of immigrants in different parts of the country. In 1 99 1 , Ontario was 
the destination of 50% of all immigrants, but of 6 1 % of independent 
immigrants, 63%- of family class immigrants, and 63% of assisted rela- 
tives. In 1992 the province received 47% of all immigrants, but 53% of 
independents, 64% of all family class, and 63% of assisted relatives. In 
1991 Quebec attracted 10% of all immigrants and 25% of all business 
class immigrants (entrepreneur, self-employed, and investor classes). 
In 1992 the figures were 15% of all immigration and 30% of the busi- 
ness class. British Columbia attracted a disproportionately large num- 
ber of retirees: in 199 1 , 48% (as opposed to 28% of all immigration) 
and in 1992, 45% (as opposed to 25% of total immigration.-' 

In terms of the composition of the immigrant body within a single 
province, there are also major variations between provinces. In 1991, 
47% of Ontario's Hong Kong immigrants were in the family class, and 
another 13% were assisted relatives, while only 16% were in the busi- 
ness and 17% independents. In 1992 the parallel figures were 49% and 
14%. with 17% in the business classes and 10% independents. In 1991. 
69% of all Hong Kong immigrants to Quebec were in the business 
classes and in 1992, 78%. British Columbia has a more even distribu- 
tion. For 1991 the proportions were family class 29%. assisted relatives 
8%, business classes 39%, and independent 7%. For 1992 the figures 
were 31%- family class, 8% assisted relatives, 39% business classes, 
and 5% independent. 

The continuing decline of the independent class is a cause for con- 
cern, since it is in this class above all that Canada hopes to find the tal- 
ent for the future. 



- The retiree class has already been eliminated. People arriving in Canada in 
this class made their applications some time ago. 



8 UPDATE 



Immigration class by 


province. 


1991 












FamiK C 


Hiven 


tesign 


Assist 


Entre- 


Self- 


Invest 


Retired 


Other 


TOTAL 


Class 


Ref. 


i lass 


Rel 


preneur 


Empkn 






Indep. 




New lnuiuiland 


2 








4 








3 





5 


14 


PEI 


1 








1 








2 








4 


Nova Scotia 


21 








9 


37 





5 


(I 


5 


77 


New Brunswick 


13 





1 


3 


12 





t) 


16 


7 


52 


Quebec 


243 


5 


4 


61 


1049 


5(1 


502 


82 


314 


2310 


Ontario 


5246 


7 


21 


1471 


900 


174 


686 


846 


1871 


11222 


Manitoba 


109 


1 


2 


29 


46 





43 


23 


61 


314 


Saskatchewan 


65 








18 


48 


4 


25 


16 


31 


207 


Alberta 


805 


1 


10 


247 


223 


8 


103 


150 


283 


1830 


Northwest Terr. 


7 








1 


5 











5 


18 


B.C. 


1828 


3 


5 


477 


1288 


68 


1105 


1064 


471 


6309 


Yukon 
































Prov. Not Statec 
































TOTAL 


8340 


17 


43 


2321 


3608 


304 


2474 


2197 


3053 


22357 



Immigration class by 


pro\ 


ince, 


1992 












Famil) Convert 


design 


Assist 


Entre- 


Self- 


Invest. 


Retired 


Other 


TOTAL 


Class 


Ref. 


Class 


Rel. 


preneur 


Employ. 






Indep. 




Newfoundland 24 

















9 





10 


43 


PEI 5 











4 





1 





3 


13 


Nova Scotia 37 








10 


40 


9 


35 


3 


8 


142 


New Brunswick 21 








14 


22 








4 


9 


70 


Quebec 302 




1 


79 


2990 


223 


1119 


174 


643 


5532 


Ontario 8351 


11 


9 


2311 


1713 


264 


1208 


1381 


1719 


16967 


Manitoba 158 







36 


93 


1 


30 


43 


43 


405 


Saskatchewan 1 09 







45 


211 


2 


52 


27 


45 


492 


Alberta 1278 




3 


415 


546 


16 


169 


279 


253 


2960 


Northwest Terr. 1 








2 














1 


4 


B.C 2808 


2 





734 


1981 


108 


1487 


1557 


485 


9162 


Yukon 3 











4 














7 


Prov. Not Stated 





























TOTAL 13097 


17 


13 


3646 


7604 


623 


4110 


3468 


3219 


35797 



Moratorium on Immigrant Investor Program in Manitoba 



On 4 January the Manitoba government 
placed a moratorium on provincial accep- 
tance or processing of any offerings under the 
federal Immigrant Investor Program (IIP). 
Manitoba Industry, Trade and Tourism 
Minister Eric Stefanson announced that this 
action was taken following receipt of an inde- 
pendent auditor's report calling for a clearer 
definition of the roles and responsibilities of 
the federal and provincial governments with 
respect to the review, compliance, and moni- 
toring of the program. The overall objective 
of the provincial government's position is to 
conduct a comprehensive review of the 
investment offerings developed under the 
program to ensure compliance and to deter- 
mine the economic benefits accruing to the 
Province. 

Investment proposed by previously 
approved syndicated funds which have met 
their minimum capital requirements will still 
be allowed. However, prior to an investment 
being made, those proposals will be subject to 
an independent evaluation retained by the 
province at the expense of the proponent. 
Upon resolution of the issues raised in the 
auditor's report, the province will require a 
similar independent evaluation from project 
specific business venture proposals. 



The province, in conducting its review of 
economic merit, will also increase the empha- 
sis on the financial analysis as well as assess- 
ing the impact of the specific project proposal 
on the respective industry sector. The firm of 
Deloitte and Touche was hired to undertake 
the program audit. Stefanson also stated that 
Manitoba will begin discussions with the fed- 
eral government aimed at resolving the fol- 
lowing issues, raised by the auditor's report: 

1 ) requiring offerings of immigrant investor 
funds to come under the control of a fed- 
eral regulatory authority; 

2) placing responsibility for monitoring and 
reviewing the promoters' reporting obliga- 
tions with a federal regulatory authority; 

3) expanding the program regulations and 
guidelines to include the ability to apply 
penalties directly against the promoters 
for failure to comply with the guidelines; 

4) extending the investor holding period for 
syndicated funds from 5 years to 7-10 
years or terminate the acceptance of syn- 
dicated funds; 

5) establishing program guidelines which 
will require immigrant investor funds to 
be maintained as trust funds throughout 
the development of the project and the 
investment period for a syndicated fund; 



6) requiring full disclosure and capping 
of financial benefits accruing to pro- 
moters and developers in the offering 
memorandum; 

7) requiring promoters to provide an inde- 
pendent verification by an auditor certify- 
ing that the actual cost, promoters' and 
developers' fees and any other related 
costs incurred are in accordance with the 
offering memorandum; and 

8) requiring a minimum of 50% of individual 
subscriptions to be sold before an offering 
can proceed, with at least a 10% cash 
deposit with the escrow agent and the 
remainder supported by an irrevocable 
bank letter of credit issued by an interna- 
tionally recognized financial institution. 

The IIP was introduced by Employment 
and Immigration Canada (EIC) in January 
1986 to attract successful and skilled business 
persons who wish to immigrate to Canada 
and invest their capital in Canadian business 
ventures. The program was specifically 
designed to be a new source of capital for 
Canadian business ventures to benefit eco- 
nomic development in Canada. Under the 
program, immigrants are provided an oppor- 
tunity to either invest in a specific business 
venture or in a syndicate which, in turn, 
invests in eligible businesses. 



UPDATE 9 



Political Participation of Chinese-Canadians in Toronto 



Toronto's Chinese-Canadians have par- 
ticipated in politics by organizing pressure 
groups, contacting government officials, 
and voting or running in local elections. 
One such active pressure group in Toronto 
is the Chinese Canadian National Council 
for Equality [see Update, Spring 1991, 
4:13J, which articulates the interests of seg- 
ments of the Chinese community. 

For example, the CCNC often demands 
that the federal government redress the 
issue of the head tax, which was imposed 
on every Chinese immigrant from the 19th 
to mid-20th century [Sing Tao, 19 January 
1993, p. 7]. Recently, the Council lobbied 
Employment and Immigration Canada and 
urged the federal government to consult the 
opinions of ethnic groups before the imple- 
mentation of changes in policy proposals. 
One such change generating Council con- 
cern was the proposal that immigrant spous- 
es who marry Canadian citizens or landed 
immigrants return to their country of origin 
in order to apply for landed status. 

Contacting government officials at the 
municipal level is another important form of 
Chinese political participation. A good 
example of this municipal involvement was 
the recent February meeting between city 
officials and shopkeepers from the Spadina/ 
Dundas Chinatown area. To alleviate refuse 
problems, Chinese store owners urged gov- 
ernment officials to consider collecting 
garbage from Chinatown three days rather 
than only two days per week. 

Many Chinese-Canadians have also 
actively participated in Toronto's elections 
at the federal, provincial, municipal, and 
school board levels. As the Chinese popula- 
tion in Metro has grown considerably since 
the late 1980s, these new eligible voters 
have become the lobbying target of 
Chinese-Canadian candidates in the forth- 
coming federal elections. 

To date, three candidates of Chinese 
background have been nominated to run in 
the next federal elections. With the retire- 
ment of MP Dan Heap from political life, 
his assistant Winnie Ng was nominated as 
the New Democratic Party (NDP) candidate 
in the Trinity-Spadina constituency, a 
stronghold of the NDP in past federal elec- 
tions. Since the party nomination, Winnie 



by Sonny Lo 
Toronto 

Ng has been very active in campaigning for 
support in the Chinese community. 

Another Chinese-Canadian, Ben Eng, 
recently received (March 23) the nomina- 
tion of the Progressive Conservative Party 
(PC) in Scarborough-Agincourt riding. He 
is a 42-year old former sergeant in the 
metropolitan police force for eleven years. 
Since his decision to participate in the forth- 
coming elections, many leaders in the 
Chinese community have expressed their 
support. However, Eng's affiliation with the 
PC may be a liability as the Tory party is 
unpopular among many electorates. It also 
remains to be seen if Eng will be able to 
mobilize the ethnic support of 
Scarborough's Chinese community, whose 
political awareness and orientations have 
not been hitherto studied by researchers. 

The third ethnic Chinese candidate is 
David Lu, who was nominated February 1 1 
by the NDP in the Don Valley North riding. 
Lu immigrated to Canada as a refugee from 
Vietnam in 1979 and is presently an advisor 
in the municipal government's Labour 
Consultation and Action Centre [Sing Tao, 
12 February 1993, p. 2]. 

According to Lu. in September 1992 
NDP headquarters encouraged members of 
ethnic minorities to participate in future 
federal elections. As a result, he wrote an 
open letter to 200 NDP members in Don 
Valley North, expressing his intention to 
seek the party's nomination. In subsequent 
letters to these party members, he outlined 
his political platform, which includes oppo- 
sition to the Free Trade Agreement between 
Canada, the U.S., and Mexico; a demand 
for the federal government to provide more 
jobs for Canadians; and an increase in taxes 
on large business enterprises. 

Like the other two candidates, Lu has 
appealed for support from the Chinese com- 
munity. As an executive member of the 
Vietnamese-Cambodia-Laos-Chinese 
Services Organization of Ontario since 
1983. Lu will secure the support of the 
association's members in Toronto. The main 
question is whether he can defeat his oppo- 
nents by securing enough votes across eth- 
nic lines in Don Valley North. 

It is a significant phenomenon that more 
Canadian Chinese in Toronto are actively 



participating in the forthcoming federal 
elections and that three candidates have 
received their party nominations. 
Regardless of their success in election to the 
House of Commons, their participation has 
already not only symbolized the integration 
of Chinese-Canadians into mainstream 
political life, but also marked an important 
chapter in the political history of the 
Chinese community in Toronto. 



Several of the newly nominated Chinese- 
Canadian candidates for federal elections 
have connections with Hong Kong, so we 
have featured interviews with some of 
them: Ben Eng and Winnie Ng of the Metro 
Toronto area and Raymond Chan of 
Vancouver. Tommy Tao, who also came 
from Hong Kong, is the NDP nominee from 
Vancouver Quadra and will he interviewed 
for the next issue. 




Ben Eng 



10 UPDATE 



Ben Eng: PC Nominee for Scarborough-Agincourt 



Ben Eng. a 42-year old former police 
sergeant, was nominated March 23 as the 
Tory candidate for the Scarborough- 
Agincourt riding. Composed of diverse ethnic 
groups, this suburban riding includes approxi- 
mately 100,000 residents, about 20% of 
whom are ethnic Chinese. 25% Anglo- 
Canadian, and 55% other groups including 
Greek. Afro-Canadian, and South Asian. 
Many of the Chinese residents are recent 
immigrants from Hong Kong. 

Ben Eng is a well-known figure in 
Toronto. As a member of the Metro Toronto 
Police Force and Officer of the Year in 1 989. 
he served with the Asian Crime Squad and in 
the Public Affairs Department. Two years 
ago, he made headlines over differences w ith 
Susan Eng. Chair of the Police Services 
Board, about the release of crime statistics by 
ethnic background. He now heads a consult- 
ing business, Falcon Filmworks and Multi 
Eyes Student Sendees, which provides a cri- 
sis intervention service for visa and immi- 
grant students and their parents, many of 
whom are from Hong Kong or Taiwan. 

On March 26. Bernard Luk and I inter- 
view ed Mr. Eng to discuss his background, 
his position on various issues, and plans for 
his upcoming election campaign and for his 
riding. Asked about his platform. Ben 
stressed his main concerns are the economy 
and, what he terms, "social law and order." 
By the latter, he means not only safety of the 
community but concern with abuse of social 
assistance programs, strengthening of the 
refugee process, tightening criminal proce- 
dures, and a focus on the responsibilities and 
contributions of Canadian citizens to their 
country. His perspective and experience as a 
police officer has obviously influenced his 
political positions. 

In his nomination acceptance speech, Ben 
emphasized that it is time for a "new style of 
politics" and a new attitude by ordinary 
Canadians. "We Canadians have to stop this 
attitude of take, take take, and not putting 
anything back in. This 'new attitude' must 
not only reflect appreciating what we have 
but also how we as individuals can contribute 
to ensure that Canada remains ranked by the 
United Nations as the best place in the 
world." 

In his campaign, he hopes to transfer his 
integrity as a police officer to the political 



by Janet A. Rubinqff 

Toronto 

arena and win back the trust of ordinary citi- 
zens for their elected representatives. 

Asked about his campaign strategies, Mr. 
Eng stressed the importance of mobilization 
of support and voter outreach. While there are 
many recent immigrants in his riding, most of 
these are already citizens but many are not 
registered to vote. He sees a major challenge 
in reaching these new citizens and encourag- 
ing their involvement in the local political 
process. Asked about plans for his constituen- 
cy. Ben indicated that he favoured more par- 
ticipatory democracy at the local level and 
greater involvement of citizens. He plans to 
set up a "constituency parliament." to provide 
a forum for the discussion of local and 
national issues. 

In response to our question about his nom- 
ination by the Progressive Conservatives, he 
mentioned that he had been approached by 
several parties, including the Liberals and the 
Reform Party. His father. Hughes Eng, is an 
active member of the provincial Liberal 
Party. As Ben admits, it would have been an 
easy route for him to run as a Liberal since 
there was already an established Chinese 
group, headed by former Ontario Minister of 
Energy Bob Wong, within the party. 
However, he felt his philosophical leanings 
and political thinking were closer to the con- 
servatives. He thus accepted the offer to run 
as a PC candidate in Scarborough-Agincourt. 

Asked about the issue of "tokenism" as an 
ethnic Chinese candidate, he indicated that he 
felt this was not a problem, though he had 
been approached to oppose Winnie Ng in the 
Trinity-Spadina riding. He prefers not to be 
labelled an "ethnic candidate" and identifies 
himself first and foremost as a Canadian. 
However, he is aware of his Chinese roots 
and feels that over the years he has forged an 
identity based on "bi-culturalism," like many 
other immigrants. He speaks Cantonese and 
Toishanese (Pearl River Delta dialect) and 
has also made the effort to learn Mandarin. 

In response to a question on the possibility 
of his "entrapment" by special political inter- 
est groups within the Chinese community, 
such as Taiwan or PRC proponents, he also 
did not feel that would be a problem for his 
candidacy. Regarding specific questions 
about his position on issues related to the 
Chinese community like the head tax, he 
stressed that he did not support redress of the 



head tax on an individual basis but did advo- 
cate negotiations with the federal government 
and the establishment of an endowment fund. 
Concerning the issue of human rights in 
China, he looks forward to hearing the posi- 
tion of his Chinese constituency. In general. 
he said that "we can't forget the lives at 
Tiananmen." but at some point. "Canada also 
had to increase its interaction with China." 

Ben Eng feels that the number of Chinese- 
Canadian candidates now running is an indi- 
cation of the "political maturing of the 
Chinese community," which has taken its 
place in mainstream political life. It has been 
twenty years since anyone of Chinese descent 
served at the federal level. The newer wave 
of Chinese and Hong Kong immigrants have 
established themselves in Canada, and the 
older Chinese community now has many con- 
nections and is more centralized in its identi- 
ty. Ben feels that people like himself. Bob 
Wong, and Citizenship Judge. Gordon Chong 
- who are of Chinese descent but grew up in 
Canada, articulate a "westernized way," and 
are integrated in mainstream Canadian life - 
have a unique role to play as a bridge 
between the older and newer Chinese- 
Canadian communities. 

Ben sees himself more in this role as a 
bridge between cultures rather than an ethnic 
Chinese candidate. As a Canadian-raised and 
trained police officer for many years, he is 
well known by the immigrant Chinese com- 
munity. 

In answer to a question about the possibil- 
ity of an Anglo "backlash" against ethnic 
candidates, Ben replied that it was more like- 
ly to be a political, rather than ethnic, reaction 
by voters against unpopular incumbents and 
their policies. He felt the fact that both he as a 
Tory and Winnie Ng (NDP) were running on 
opposite sides would defuse the "Chinese- 
ness" of any issue. Most Canadians are very 
familiar w ith the Chinese community, and 
people are basically comfortable with the suc- 
cess of the Chinese. He concluded that how 
much each candidate used or flaunted his 
"Chineseness" or focused on singularly 
Chinese concerns, like redress of the head 
tax, was up to him/her. For his part. Ben 
intends to keep his campaign centred on 
Canadian issues, such as the economy and 
law and order. 



UPDATE 11 



Winnie Ng: NDP Candidate for Trinity-Spadina 



Ms. Ng, well-known in the community 
for her work in the labour and anti-racism 
movements, has been nominated to run as 
the federal NDP candidate in the Trinity- 
Spadina riding of Toronto. She replaces Dan 
Heap, M.P. (NDP) who retires this year. 
Encompassing the University of Toronto to 
working class neighbourhoods, this down- 
town riding is one of the most 
linguistically and culturally diverse in the 
city, including Chinese, Italian, Vietnamese 
and Portuguese groups. Bernard Luk and I 
interviewed Winnie Ng for this article on 
March 30. 

Though she was born and grew up in 
Hong Kong, Ms. Ng is of Hokkien back- 
ground. Her parents were originally from 
Fujian province in China. She is fluent in 
Cantonese, Mandarin and Hokkien, as well as 
English and some French. 

She first came to Canada in 1968 as a high 
school visa student and spent two years in 
Victoria, B.C. Graduating with a B.A. in 
Sociology from McGill. she married and 
came to Toronto in 1975. She landed her first 
job in 1975 at University Settlement House 
where she worked for two years and helped 
establish the first English classes for immi- 
grant workers. She later became the first 
Chinese-Canadian union organizer with the 
International Ladies Garment Workers Union. 

As early as 1976, she and her husband 
helped in the election campaigns of Dan 
Heap, and she has been involved in local 
NDP politics ever since. 

In response to our question, "Do people 
try to identify you as 'the Chinese candi- 
date'," Winnie conceded that some do. 
However, she emphasized that her support 
also included the women's and labour move- 
ments, in addition to her support from the 
Chinese community. She mentioned the need 
to make a broader appeal than Chinese votes 
since her riding is so diverse. 

Even the local Chinese community in her 
riding is not homogeneous and includes both 
old established residents and new immi- 
grants. Many of the latter are not yet citizens; 




Winnie Ng 

the majority are from the PRC. rather than 
Hong Kong, or ethnic Chinese from Vietnam. 
Of the approximately 97,000 residents in the 
riding, only about 20% of them are of 
Chinese background. 

As a member of the New Democratic 
Party, Ng's political stance as a workers' 
advocate is well known. She is also familiar 
to the residents of the riding, from all ethnic 
groups, since she has lived and worked in the 
community for over 18 years. 

We talked about the prospect of the 
provincial NDP government being a liability 
to her federal election campaign. Her 
response was that her campaign emphasized 
federal rather than provincial issues - particu- 
larly, economic issues like opposition to the 
North American Free Trade Agreement 
(NAFTA) and its effect on Canadian jobs. 
Her campaign motto is "jobs and justice." 

She admitted the election could be very 
close and would basically be a two-way race 
between Liberal and NDP candidates. 
Trinity-Spadina was traditionally a Liberal 
riding until Dan Heap won by a narrow mar- 
gin in 1981. Since then the elections for MP 
have always been close. 

Questioned about how conservative-liber- 
al splits within the Chinese community might 



affect her campaign, Ms. Ng hopes to recon- 
cile some of these differences by staying 
above local disputes within the community. 
Regarding the head tax issue, she supports 
government redress to the individual victims 
of this tax, in addition to the establishment of 
an endowment fund for the community as a 
whole. She feels it is important for the gov- 
ernment to negotiate with the victims as a 
gesture of good will. 

As a Canadian candidate. Ms. Ng does not 
see herself becoming embroiled in Taiwan- 
PRC political issues. She strongly supports a 
development model which respects human 
rights and democracy - not just for Taiwan or 
China but for all areas of the world. An 
admirable part of Canadian identity is the 
country's current position on human rights. 
She feels Canada's emphasis on basic human 
rights should be extended not only externally 
to include its relations with the Third World 
but also internally to improve conditions for 
Native Canadians. 

From the issue of human rights, we asked 
about how she would chart the course of 
racism in Canada, its rise and decline. Winnie 
answered that there had been some definite 
progress against more blatant forms of dis- 
crimination, especially since the 1940s when 
Chinese-Canadians could not vote. However, 
today there are more subtle forms of racism 
which must be challenged; "we can never be 
complaisant about this progress." She sup- 
ports more anti-racism programs that empha- 
size equality, respect and understanding 
between different peoples. She also favours 
legislation to break down systemic barriers to 
equality in Canadian society. 

She envisions "prospects for more funda- 
mental change" in the future and a broader 
national commitment to multiculturalism, 
what she terms "the celebration of Canada's 
multi-heritage." In particular, "the House of 
Commons should reflect the gender balance 
and the cultural diversity of Canada." This is 
the vision she feels Canadians must work 
towards. 



12 UPDATE 



Raymond Chan: 

Liberal Party Candidate 

in B.C. 

In Hugh X. Tan 
Vancouver 

On 29 November 1992. Raymond Chan 
won the federal Liberal Party nomination for 
Richmond, B.C. In a close vote. Chan defeat- 
ed ibv onlj 250 votes) the second-ranked 
candidate. Herb Dhaliwal. an Indo-Canadian 
businessman and vice-chair of B.C. Hydro. 
At the time there was considerable controver- 
sy over the issue of allow ing non-residents of 
Richmond riding to vote - a practice permit- 
ted under Liberal Party rules, although an 
attempt was made to change it in mid-stream. 

Mr. Chan, who emigrated from Hong 
Kong in 1969 and became a Canadian citizen 
in 1974. is an engineer at the TRIUMF 
Centre and former chairman of the 
Vancouver Society in Support of Democratic 
Movement (VSSDM) [see Update. 5: 15]. 
Having completed grade 1 2 at Vancouver 
Technical Secondary School, he received a 
Bachelor of Applied Science in Engineering 
Physics from the University of British 
Columbia and has worked at TRIUMF for 
the past 14 years. 

Raymond Chan first entered local politics 
in 1989 when he organized and was founding 
chairman of the VSSDM. During his three 
year term, he made many contacts with offi- 
cials at three levels of government, and he 
became aware of the lack of representation 
by Asian Canadians. For example in the par- 
liament, there were no M.P.s from the over 
800.000 Chinese-Canadian population. He 
felt that as a result, mainstream Canadian 
society had little knowledge of Asian coun- 
tries or of the Asian communities in Canada. 

In order to change this situation. Mr. Chan 
decided to run for the federal Liberal Party 
nomination in Richmond, where Asian- 
Canadian communities have expanded rapid- 
ly in the past few years. He has been a long- 
time supporter of the Liberal Party and partic- 
ularly values its policies on free enterprise 
and multiculturalism. 

At present. Raymond Chan is actively 
preparing for the federal election by holding 
fund raising events and advertising his 
political platform to the 120.000 Richmond 
residents. 



Hong Kong and the 
US-China Most Favoured Nation Issue 



With the approach of June and the begin- 
ning of summer, we can expect to see repre- 
sentatives and senators in the US Congress 
raising the issue of China's Most Favoured 
Nation (MFN) status with the United States. 
Hong Kong has been caught in a recurring 
debate between the US and China on this 
issue since 1989. The territory's vulnerability 
in this perennial dispute reflects the impor- 
tance to Hong Kong not only of its interna- 
tional trade position, but also of its trade and 
investment relationship with China and the 
growing fusion of the South China and Hong 
Kong economies. To a certain extent. 
Canadian exports to China could also be 
caught in the crossfire between the US and 
Beijing. 

MFN status is a fundamental element of 
the trading relationship between the two 
countries. Since it was granted to China in 
1980, it has given the PRC the lowest avail- 
able tariffs on its exports to the United States. 
China's MFN status must be renewed by 
Presidential waiver annually, and this must be 
approved by Congress. 

Until 1989 and the killings and repression 
of Tiananmen, this was a formality. Since 
then, however, this issue has been linked to 
human rights issues in China, and representa- 
tives in the United States Congress pressured 
former President George Bush to abrogate 
this arrangement. Presidential veto of 
Congressional legislation has been used to 
continue China's MFN status. 

For the United States Congress, the issue 
is more than a political statement about 
human rights issues in China. China's bur- 
geoning trade surplus with the United States, 
estimated to be at least SI 2 billion this year. 
has also created resentment within the US. 
Lobbyists from various American industrial 
and labour groups have applied considerable 
pressure on Congressional and executive 
branches. On their side. Chinese leaders hav e 
also been sending a steady stream of high- 
level delegations to the United States to pro- 
mote China's case for continued MFN status. 

The issue has important implications for 
Hong Kong. First of all. China's exports to 
the United States through Hong Kong are 
more than double direct exports to the United 



States. Two 1990 US government studies 
estimated that loss of MFN status would 
result in significant tariff increases on 90' i of 
Chinese exports to the LIS and a loss of about 
$3 billion in Chinese exports. 

This would have a profound impact on the 
Hong Kong shipping and handling industries, 
as well as other services and commercial 
infrastructure. More significant would be the 
impact on Hong Kong companies which have 
moved to or established manufacturing facili- 
ties in South China. These manufacturers 
would suddenly lose their competitive posi- 
tion in the United States market. 

MFN status is reciprocal, which means 
that non-renewal of this status would also 
have an impact on US exports, as they would 
be subject to a 209c tariff. While the US is an 
important source of technology for China, the 
bulk of China's imports from the United 
States still consists of grain, semi-manufac- 
tured goods, and some equipment which 
could be imported from other sources, includ- 
ing Canada. 

The importance of this issue to Hong 
Kong is something which unites the leading 
elements in Hong Kong politics. When the 
issue first arose in 1990. the governor of 
Hong Kong at the time. Sir David Wilson, 
wrote to the United States Congress urging 
them to approve renewal of China's MFN 
status. Leading Hong Kong politicians, 
industrialists, and economists warned of the 
impact of loss of MFN status on the territo- 
ry's economy. They predicted a massive flow 
of investment out of Hong Kong to Southeast 
Asia, especially Singapore. Even former US 
Ambassador Winston Lord added his voice to 
this chorus. 

A new President and a new Congress will 
be addressing this issue in June. It may be 
that, despite the rhetoric and hyperbole. MFN 
status will be renewed for another year. In the 
meantime. China will attempt to reduce the 
irritant of its large trade surplus by giving 
more favourable consideration to United 
States exports to China for products and com- 
modities which Canada is also attempting to 
export. So while the implications for Hong 
Kong are important. Canada may also be 
affected by this ongoing trade dispute. 



UPDATE 



Canada and Hong Kong Sign Environment Agreement 



On 8 September 1992, Canada and Hong 
Kong signed a four year environmental coop- 
eration agreement to increase the exchange of 
information and technology. The accord was 
signed in Hong Kong by Canada's Minister of 
State for the Environment, Pauline Browes, 
and Hong Kong's Secretary for Planning, 
Environment and Lands Branch, Tony Eason. 

The agreement calls for the two countries 
to develop a program in the areas of environ- 
mental impact assessment, public awareness 
and education, waste management, applica- 
tion of clean technology, and atmospheric pol- 
lution, including acid rain and climate change. 

At the signing ceremony, Minister Browes 
stated, "Canada is committed to maintaining 
the momentum of the recent U.N. Conference 
on Environment and Development. One of the 
requirements for success on a global scale is 
partnerships. The agreement signed today 
exemplifies the teamwork that we must con- 



tinue to build between nations and within 
nations." Secretary Eason declared, "The 
Hong Kong Government welcomes the 
opportunity to participate with the 
Government of Canada in the bilateral 
Memorandum of Understanding on environ- 
mental cooperation. We also look forward to 
sharing information with Canada on its very 
comprehensive Green Plan and our own 
White Paper on the Environment." 

Canada's Green Plan, a six-year, CDN 
$3 billion strategy for introducing sustainable 
development in Canada, commits the federal 
government to strengthen bilateral environ- 
mental cooperation. Through the exchange of 
knowledge and creation of commercial oppor- 
tunities, this environmental agreement signed 
between Canada and Hong Kong is a step 
towards global environmental protection. In 
addition, such partnerships stimulate trade in 
environmental products and services. 




During her visit to Hong Kong to sign the 
Environmental Agreement, the Hon. Pauline 
Browes, Minister of State for Environment, 
visited the Canadian International School, 
September 1992. 



Memories of the fall of Hong Kong and the 
capture of Canadian troops there have been 
revived over the past while. Claims in the 
recently released report of Major-General 
Maltby, the British commander in Hong Kong 
at the time of the Japanese invasion in 
December 1941, that Canadian soldiers were 
drunk and cowardly and that they failed to put 
up a strong resistance to the Japanese, have 
been soundly rejected in Canada. The allega- 
tions have been seen as the attempt of a defeat- 
ed commander, who suffered the humiliation of 
surrendering to the Japanese on Christmas Day, 
to shift blame for the defeat onto other shoul- 
ders - in this case onto the shoulders of non- 
British troops. The report, which has just 
become available in London under the fifty 
year rule, followed the same lines as a recently 
released report on the fall of Singapore, in 
which the British commander blamed the col- 



The Fall of Hong Kong 

lapse in Singapore on the cowardice of 
Australian troops. There were loud protests 
and counter-claims in Australia. In Canada, 
Defense Minister Kim Campbell came strongly 
to the support of the Canadian troops and stated 
that there was no historical basis for the report. 

The existing accounts of the fall of Hong 
Kong and the subsequent imprisonment of 
eight hundred Canadian troops have never 
made any mention of cowardice. Instead, they 
describe the impossible task the soldiers were 
given. The troops, from the Winnipeg 
Grenadiers and the Royal Rifles, arrived in 
Hong Kong only a few weeks before it came 
under Japanese attack. Hong Kong was almost 
impossible to defend because of a land border 
with occupied China and a long and exposed 
sea coast. It was also extremely isolated, far 
away from the nearest Allied forces. Previous 
accounts of the fall of Hong Kong castigated 



the British authorities for sending the Canadian 
battalions to Hong Kong when they already 
knew that this "outpost of Empire" (in the 
words of Winston Churchill) could not be 
defended. The Canadian troops were, in effect, 
condemned to death or imprisonment. 

The repetition of criticisms of Canadian 
troops touched a raw nerve, coming as it did so 
shortly after other perceived attacks on the 
Canadian forces during World War II, in the 
CBC television series the Valour and the 
Horror. The Hong Kong story found surviving 
Canadian veterans in fighting spirit to defend 
their honour and that of their dead comrades. 
Sources on the Canadian troops during World 
War II include: 

Philip Bruce, Second to None, Oxford, 1991 . 
Kenneth Cambon, Guest ofHirohito, 

Vancouver, 1990. 
Carl Vincent, No Reason Why. Sl\tts\i\k, 1991. 



CCCHK Selects New Executive Director 



Ms Leslie Henderson has been appointed 
the new executive director of the Canadian 
Chamber of Commerce in Hong Kong. On 
March 1 she replaced Heather Allan, who 
worked for the Chamber for 3 years. 

Ms Henderson is a long-term resident of 
Hong Kong although she spent the last two 
years in Vancouver as conference coordina- 
tor with the UBC Conference Centre. She is 

14 UPDATE 



also a qualified secondary school teacher and 
taught English at the British Council in Hong 
Kong. She explained that she looks forward 
to the "challenge of making events flow 
smoothly and helping people make connec- 
tions through the Chamber." 

The Canadian Chamber of Commerce in 
Hong Kong is a non-profit organization with 
approximately 900 members and five full- 



time staff. There are fifteen committees 
which range from China Trade to Human 
Resources to the Entrepreneurs Committee. 
The Chamber holds approximately 80 events 
each year, making it one of the most active 
Chambers in Hong Kong. It is the largest 
Canadian Chamber outside of Canada. 



The Right Connection: Government of Ontario Office in Hong Kong 



In Anh Truong 

International Trade Coordinator 
Ontario Office, Hong Kong 



For many Canadian businesses. Hong 
Kong is considered to be the gateway to both 
China and Asia. There are more Canadians liv- 
ing in Hong Kong and more Canadian busi- 
nesses located in the territory than in any other 
Asian country. With increasing business 
opportunities in China and Southeast Asia, the 
Government of Ontario Trade Office is contin- 
ually assisting Ontario companies in taking 
advantage of trade and investment in some of 
the world's fastest growing economies. 

In Hong Kong, doing business not only 
means being familiar with the environment, 
but it is also vital to develop proper contacts. 
This is where the Ontario Government office 
can make a difference to individuals who ven- 
ture to do business in this region. According to 
Andrew Szende. Senior Agent for Asia. 
"Hong Kong practices business with an old- 
fashioned sentiment; one has to build a trust- 
ing friendship before engaging in any busi- 
ness. This is why contacts are so important." 



Most of the business contacts made in 
Hong Kong occur outside of the office, at 
business and social functions, either formal or 
informal. Government representatives offer a 
high degree of credibility which enables them 
to interact with high-profile government offi- 
cials and senior business executives in both 
countries. The Government of Ontario can 
capitalize on these contacts by linking up 
companies or business people. 

With a mandate to promote and strengthen 
trade, investment, and cultural ties between 
Ontario and Asia, the Government of Ontario 
first opened an office in Hong Kong in 1 980. 
Initially, the office began w ith one trade rep- 
resentative and two locally-engaged staff. 
Today there is a team of nine Canadian and 
locally-hired staff, all working to serve the 
needs of businesses and interested parties. 

For Ontario firms, the staff can help iden- 
tify trade and investment opportunities; pro- 
vide advice about local business practices; 



source equity partners, agents, and distribu- 
tors; and assist in arranging appointments and 
itineraries. Hong Kong companies interested 
in investing in Ontario can equally look for 
the same services provided by the 
Government of Ontario. 

While the Ontario office mainly focuses 
its efforts on trade and related business, the 
staff often handles educational and cultural 
enquiries from the Hong Kong public. 
Representatives can also counsel local stu- 
dents and parents about education in Ontario. 
Thus, all individuals who are planning to 
study or immigrate to Ontario are encouraged 
to contact this office. For further information, 
please contact: 

The Government of Ontario, Canada 

908 Hutchison House 

10 Harcourt Road 

Central, Hong Kong 

Tel: (852) 845-3388 

Fax:(852)845-5166 



Canadian Business Award Launched bv CCCHK 



The Canadian Chamber of Commerce in 
Hong Kong (CCCHK) recently announced 
the launch of the Voyageur Award, which is 
designed to acknowledge the achievements 
and contributions of successful Canadian 
businesses in Hong Kong. Over 35,000 
Canadians reside in the territory, trading in 
over CDNSl .7 billion, and this award was 
created to recognize the increasing impor- 
tance of these ties between Canada and Hong 
Kong. In addition to the CCCHK. the award 



is also sponsored by the Hongkong Standard, 
Hongkong Telecom, the Chinese-Canadian 
Association, the Canadian Universities 
Association, and the Canadian Club. 

The objective of this new annual award is 
to honour successful Canadian business in 
Hong Kong. It is hoped that by offering such 
recognition to effective business people, the 
Voyageur award will serve to encourage and 
cultivate the entrepreneurial spirit for which 
Hong Kong is famous. A total of 22 nomina- 



tions were received by the closing date March 
5. The winner will be announced at the 
CCCHK annual Ball on May 29. 

The significance of the name "voyageur" 
is derived from Canadian history. 
"Voyageurs" were people who explored the 
vast territory of Canada, setting up trading 
posts in remote areas. Since then, the term 
has become a metaphor for the exploration of 
new grounds - a very appropriate name for 
Canadians forging ahead in Hong Kong. 



Publishing in Cantonese: A Clue to Hong Kong Identity? 



Since 1949 the cultures of Hong Kong and 
China have taken very different paths. Some 
differences, such as those in lifestyle and 
standard of living, are obvious even to the 
casual observer. However, some subtle differ- 
ences exist as well. One of the most impor- 
tant of these is a growing sense among people 
in Hong Kong that they are first and foremost 
just that - Hong Kong people - and only sec- 



fry Don Snow 
Hong Kong 

ondarily Chinese. As a number of Hong 
Kong researchers have discovered, many in 
the territory, particularly younger and better 
educated people, have an increasingly strong 
tendency to identify primarily with Hong 
Kong and its culture rather than with the cul- 
ture of China. 

One interesting aspect of this increasing 
cultural gap between China and Hong Kong 



lies in the written Chinese language. In gener- 
al, people in China and Hong Kong read and 
write the same form of Chinese, but over the 
past few decades more and more articles and 
books in Hong Kong have been written in 
Cantonese rather than in Mandarin 
(Putonghua). 

Cantonese and Mandarin are both dialects 
of Chinese, so their grammar is very similar 

Publishing, cont'd page 16 



UPDATE 15 



Publishing, conl'd from page 16 

and there is also much shared vocabulary. 
However, the vocabulary differences between 
the two are quite significant, particularly in 
the colloquial registers. It is primarily this 
lexical difference which distinguishes written 
Cantonese from written Mandarin. 

Virtually all Hong Kong newspapers have 
at least one or two articles daily in Cantonese, 
and Hong Kong's best-selling newspapers - 
the Oriental Daily, Sing Pao and Tin Tin 
Daily News - have considerably more. 
Cantonese articles are also found in many 
Hong Kong magazines, and Cantonese is 
often used in popular paperbacks, such as the 
Siu Nam Yan Chou Gei (Diary of a Little 
Man) series of the late 1980s. 

The significance of this development lies 
in the importance of the written Chinese lan- 
guage as a symbol of a unified Chinese cul- 
ture. While China has always had a variety of 
mutually unintelligible regional dialects, the 
use of a unified standard written language - 
in the past, classical Chinese and now written 



Mandarin - has facilitated communication 
and provided a common cultural core. 

People in different parts of China may 
speak differently, but they have traditionally 
learned to read and write the same language 
in school and have read the same books, 
newspapers, and magazines. Of course, 
dialects have historically made an impact on 
literature in many parts of China, particularly 
in the Wu dialect region around Suzhou and 
Shanghai. However, such "dialect literature" 
has been written primarily in standard written 
Chinese, with only a small admixture of 
dialect vocabulary. 

In contrast, since 1949 much Cantonese 
literature in Hong Kong has come to use so 
much uniquely Cantonese vocabulary that it 
is not intelligible to someone who does not 
speak Cantonese. Like Hong Kong television 
programs and films, Cantonese literature has 
also come to draw heavily on modem Hong 
Kong life for its subject matter. Writers often 
assume that readers will have intimate knowl- 
edge of the territory's current events, places. 



media stars, and even popular brand names. 
In short, Cantonese dialect literature in Hong 
Kong is unique in the extent to which it has 
become an in-group conversation, markedly 
local in both its language and content. 

The significance of Cantonese literature in 
Hong Kong should not be over-estimated. 
Schools in the territory only teach standard 
written Chinese, and Hong Kong publications 
are still dominated by the standard written 
language. Many people in Hong Kong also 
look down on written Cantonese as an inferi- 
or language, arguing, at least publicly, that its 
use should be discouraged. There is, there- 
fore, little likelihood that written Cantonese 
will soon - or ever - replace standard 
Chinese as Hong Kong's written language. 
However, given the importance of written 
Chinese as a symbol of China's culture, the 
growth of an exclusive regional Chinese writ- 
ten language and literature is an interesting 
indicator of the degree to which the culture of 
Hong Kong has developed an identity and life 
of its own. 



Comparisons Between Hong Kong and Canadian University Women 



My recent research on university-educated 
women in Hong Kong and Canada compares 
their educational, family, and work strategies. 
The study of such strategies has revealed differ- 
ences in the two societies which affect women's 
decisions concerning their education, choice of 
occupation, and career patterns. As part of my 
Ph.D. research, I have examined case studies of 
women educated at the University of Hong 
Kong and Simon Fraser University in British 
Columbia. An understanding of the differences 
in these employment strategies, particularly 
among Hong Kong women, may indicate some 
of the reasons why this group experiences par- 
ticular kinds of frustration when emigrating to 
Canada. 

In general, the strategies of work and family 
I found among Canadian students and graduates 
may be described as "exploratory." By contrast, 
the strategies shown by Hong Kong female stu- 
dents and graduates may be called "commit- 
ted." 

I have used the term "exploratory" to char- 
acterize the strategies of Canadian women 
because their career decisions appear more ten- 
tative and there is a tendency to keep their 
options open. They indicate more anticipation 
of and action in the following: 



by May Partridge 
Victoria, BC 

1 ) investigation in more than one field of occu- 
pation; 

2) more frequent change of jobs; and 

3) more "stop-outs" from employment for chil- 
dren, travel, further education, relocation of 
self or of spouse, and from swings in the 
economy. Perhaps most critically, they view 
the purpose of work in their lives as a way 
to find themselves, to realize their talents. 

I have designated Hong Kong university- 
educated women's strategies as "committed" 
because they appear to take career decisions 
with a definite "game plan" in mind. This game 
plan has three steps: first, getting the good job, 
with good pay and good prospects; second, in 
two to three years, making the good marriage; 
and then, finally, having children - but only one 
or two, or perhaps none. Children are optional, 
while marriage generally is not. The obverse 
appears to be true for Canadian women. A 
number have doubts about marriage but do 
retain the option that if they are growing older 
and still wish to have a child, they may become 
single parents, even if by adoption. 

Hong Kong women do anticipate changing 
jobs, but they see such changes as necessary for 
better opportunities and in order to progress in 
their field. They generally do not anticipate 



changing fields once an occupational niche is 
established. They foresee only short interrup- 
tions in full-time employment. Overall, their 
orientation is to career development rather than 
to career change. For them, the purpose of work 
is to make a contribution to one's family and to 
society. 

There appear to be four factors which con- 
tribute to these more "committed" strategies. 
The first is the domestic socialization of many 
Hong Kong women where the chief task of 
growing up is seen as becoming able to make a 
financial contribution to the family. This atti- 
tude is rooted in immigrant family experiences 
of the struggle to establish a secure footing in a 
rapidly industrializing society. This struggle led 
to what Janet Salaff [Working Daughters of 
Hong Kong, Cambridge University Press, 1981] 
and other scholars have called the household 
economy - an arrangement where everyone in 
the household who could work, did so, parents 
as well as older children. All contributions were 
necessary and, therefore, in some sense 
acknowledged as valuable. Many of my study's 
Hong Kong participants grew up in such house- 
holds. 

Moreover, many of the young women I 
interviewed experienced a gain in personal sta- 
tus as it became clear that they would attend 



16 UPDATE 



university. They received more attention from 
their fathers; the> were discussed in glow ing 
terms in family gatherings, as those who would 
have the kinds of jobs that would provide for 
their families well. 

For these young women, obligations to their 
natal family do not end w ith their marriage. 
Hong Kong does not have the kind of social 
security network taken for granted by 
Canadians, and pensions are few and far 
between. Therefore, most of the university 
graduates, especially from working class back- 
grounds, expect to support or help support their 
aging parents. 

Hong Kong women also seek to maintain 
their status within their marriage through their 
continued economic contribution to the house- 
hold. Their incomes can make a certain kind of 
lifestyle possible, and they want to be part of 
the decision-making about large purchases and 
major investments. In particular, middle-class 
housing is expensive, and their incomes are cru- 
cial to acquiring and keeping such accommoda- 
tion. 

In addition to learning the rewards of mak- 
ing a contribution to the family. Hong Kong 
university graduates also understand the 
rewards which come to a winner in the system 
and how to capitalize on them - that if one tops 
the group in a particular skill or body of knowl- 
edge, one is entitled to expect other rewards, 
such as promotion and a raise in pay. This atti- 
tude is developed in response to a single-sex, 
highly competitive educational system. 

This system was nurtured in the network of 
convent and mission schools initially provided 
for girls in Hong Kong, and it still owes much 
to these institutions. Although it has its negative 
attributes, it encourages young women to com- 
pete strongly for what places are available at 
university. It also stresses early concentration 
on those academic subjects likely to provide 
entrance to good occupational prospects. 
Streaming grows tighter and tighter as one pro- 
ceeds through the system, each set of examina- 
tions narrowing the field of choice. Exams 
determine access to good English language 
schools in preparation for university, and they 
determine acceptance to the arts or science 
streams, each branch of which opens only to 
certain degree programs and, hence, occupa- 
tions. Therefore, those who succeed in this sys- 
tem become very focused on particular goals. 

Always the competition in English remains 
paramount. It is the language of instruction at 
the University of Hong Kong, and, thus, the 
need for its mastery determines the outcome of 
many young women's lives. It is little wonder 



thai Hong Kong University graduates coming 
to Canada find it frustrating to encounter certain 
attitudes about their English when thej ha\ e 
been clear winners in the language throughout a 
schooling system whose rewards are still heavi- 
ly dependent on its mastery. 

The third factor contributing to Hong Kong 
women's committed employment strategies is 
the continued experience of expanding opportu- 
nities. The roots of this tremendous growth lie 
in the shift of Hong Kong's economy from 
rapid industrialization to a mature service 
phase. In particular, the expansion of govern- 
ment during the 1970s meant a vast wealth of 
new jobs in education, health care, social work, 
and public administration. These fields continue 
to grow. In addition, the financial growth of 
Hong Kong during the 1980s (the capitalization 
of Southeast Asia and Guangdong province) 
has meant an increase of positions in banking 
and business administration. Women are find- 
ing good jobs in all levels of the new and 
expanding financial institutions, ranging from 
accountancy to senior management. 

The fourth factor, and an especially impor- 
tant one, is the ability to arrange childcare and 
household help and to feel comfortable with the 
arrangements. In the first place, there is the 
accessibility of one's extended family. The tight 
geography of Hong Kong means that one may 
have parents or in-laws living close at hand to 
give childcare and to provide the evening meal. 

If this is not an option, then there is the geo- 
graphic accessibility of the Philippines, with its 
surplus of relatively well-educated female 
labour. Migrant domestic labour is politically 
acceptable in Hong Kong, and a household with 
two professional incomes can hire a domestic 
helper relatively inexpensively. 

Both options are acceptable to the Hong 
Kong social construction of mothering. 
Childcare in the early years is seen as the main- 
tenance of physical security and warmth and as 
the promotion of acceptable behaviour in social 
situations. These concerns are thought to 
require the mother's close monitoring and atten- 
tion to children still at home, but not her contin- 
ual physical attendance. 

Because of these four factors - the valuing 
of all economic contribution to the family, the 
educational pressure to succeed in a particular 
discipline, the knowledge that a good job is 
there to develop into a career, and the availabili- 
ty of and comfort with household help - Hong 
Kong women university graduates are commit- 
ted to career development. However, if they 
immigrate to Canada, they may find themselves 
caught up in one of two possible outcomes. 



These outcomes also prcxeed from their initial 

strategies. 

First of all, changes in Hong Kong female 
graduates' strategies are occurring. I did inter- 
view some women who were considering 
stopouts from employment, either because of 
changes in the social construction of mother- 
hood due to Western influences or because of 
reappraisal of earlier commitments to a line of 
work. Hong Kong women meet the glass ceil- 
ing too, and at that point they must decide 
whether to go to a firm which appreciates their 
talents or start their own business. Or they come 
to know themselves better after they have 
accomplished the "good job, good marriage, 
nice kids" goal and look back to the other ambi- 
tions they laid aside to succeed in an ever-nar- 
rowing channel of educational and occupational 
opportunity. Some return to school. Thus. Hong 
Kong women who are at this stage in their lives 
may be prepared to shift gears when they come 
to Canada. They may launch their own explo- 
rations and eventually find a second career. 

However, the chances appear greater that the 
female Hong Kong university graduate who 
comes to Canada will experience frustration in 
continuing her career development. She will 
find the job market much slower as Canada is 
experiencing a severe recession in business and 
government cutbacks in spending have meant 
fewer and fewer jobs in education, health care, 
and social services. Competition for publicly- 
advertised jobs is very intense. The frustration 
of a tight job market is compounded by the 
apparent discrimination on the basis of English 
usage that a number of Hong Kong immigrant 
women have experienced. These are often 
women who have completed university degrees 
on the strength of their use of English in highly 
abstract subjects, and to find themselves being 
eliminated from consideration for a position on 
the basis of an accent or a particular style of 
usage seems very unfair. 

Moreover, married women with young chil- 
dren find themselves facing the exact same bind 
as do their Canadian sisters - an inadequate 
range of childcare services and live-in house- 
hold help very difficult to find or afford. These 
women face, as do Canadian-educated ones, 
either the loss of key productive years and the 
chance to better their family's economic stand- 
ing or massive anxiety about their children. 
These are frustrating circumstances, indeed. 

Perhaps one way Hong Kong w omen may 
gain a sense of place in Canada is to recognize 
the difficulties they have now come to share 
with their new sisters and to work with them for 
the kinds of family support systems we all need. 



UPDATE 17 



Vancouver Hong Kong Forum Society 



The Hong Kong Forum Society, based in 
Vancouver, is an organization which is just 
entering its third year of activities. Most of its 
members are people who have immigrated to 
Vancouver from Hong Kong and want to 
retain a serious interest in the territory. The 
stated purposes of the Society are to enhance 
economic, social, and cultural exchanges 
between Canada and Hong Kong, to promote 
international concern over the territory, and to 
sponsor open discussion on Hong Kong and 
its relationship with Canada. 

In its first year of operation the Society 
organized a campaign, called "Remember our 
Hong Kong Roots," in conjunction with the 
1991 Legco elections in Hong Kong. Last year 
the Forum held a seminar on the potential of 
British Columbia for business immigrants, a 
public session on Bill C-86, the new immigra- 
tion legislation, and in July hosted students 
and teachers from Hong Kong Baptist 
College, who visited Vancouver as part of their 
Character Development Program. 

In October 1992, it also co-sponsored the 
Vancouver Conference on Hong Kong, one of 
the major events of Festival Hong Kong 92. At 
the Society's annual dinner, held during the 



Festival, the featured speakers were Hon. 
Emily Lau, Legco member, and Dr. Wai Ting, 
from Hong Kong Baptist College. Dept. of 
Communication. In December a seminar was 
held on the dispute over political reforms in 
Hong Kong [see below]. Among its current 
activities is the organization of a City Circle 
for City Plan, a program launched by the 
Vancouver Municipal Government. A new 
chapter of the Society is now being set up in 
Hong Kong by one of the former Vancouver 
directors. Alex Chan. 

The Society has recently set up an electron- 
ic bulletin board to discuss Hong Kong issues, 
the On-Line Hong Kong Forum. 
Contributing members of the system include 
the United Chinese Community Enrichment 
Services Society (SUCCESS), Adia Education 
Centre, Hong Kong Link (UK), Alliance of 
Hong Kong Chinese in the U.S., Hong Kong 
Economic and Trade Office in Toronto, and 
Jack Yan, an individual in Los Angeles who 
wants to set up a similar bulletin board there. 
Members responsible for management of this 
project are Eleanor Ng, President, Peter 
Wilkins, Director, Patrick Tsang of SUC- 
CESS, and Joanne Poon of UBC. 



For further information on this on-line sys- 
tem and the Society's activities, contact the 
President, Eleanor Ng, c/o Alpha Computer, 
Lower Mall, Harbour Centre, 555 W. 
Hastings, Vancouver, BC, Canada V6B 4N4 
(Tel: 604-684-8146; Fax: 604-684-8128) 



Hong Kong 
Employment News 

A new employment and business news ser- 
vice for HongKong was recently started in the 
U.S. by Business Research Institute (BRI). The 
first issue of Hong Kong Employment Newswas 
issued in February. This bi-weekly publication 
contains placement news, job openings, and 
advertisements for Hong Kong and the sur- 
rounding regions. 

BRI also has a daily fax newsletter service, 
the Hong Kong Business Letter, which provides 
a concise, up-to-the-minute report on commer- 
cial and financial news from the Far East For 
further information on subscribing to these ser- 
vices, contact: Charles Mok, Business 
Research International, P.O. Box 3721, 
Santa Clara, CA, USA 95055; fax: (510) 792-2579; 
Internet e-mail at bri@netcom.com 



Seminar on Political Reform in Hong Kong 



Governor Patten's constitutional reforms 
have attracted much attention from Hong 
Kong immigrants in Vancouver. On 
December 1 2 the Vancouver Hong Kong 
Forum [see above] held a seminar to discuss 
recent economic and political developments 
in Hong Kong. Invited speakers, representing 
different points of view, included Selina 
Chow Liang Shuk-yee, Hong Kong Legco 
parlimentarian and member of the Hong 
Kong Cooperative Resources Centre (CRC), 
and Thomas In-sing Leung, Director of 
Chinese Studies at Regent College (UBC) in 
Vancouver. The meeting, attended by over 
1 00 people, was chaired by Eleanor Ng, pres- 
ident of the Hong Kong Forum. 

In her more conservative speech, Mrs. 
Chow indicated that the CRC hoped that both 
China and Britain would return to the negoti- 
ations. She emphasized the need for a "con- 
vergence," or smooth transition for Hong 
Kong from British rule to Special 



byHughX.Tan 

Vancouver 

Administrative Region under China's Central 
Government, and declared the CRC would not 
support any reform proposal which is not in 
favour of convergence. She further reiterated 
that people should not lose confidence in Hong 
Kong because of the recent political disputes 
and that patience was needed to monitor the 
developments. Finally, she emphasized that 
support from overseas Chinese communities 
was very important for Hong Kong. 

In contrast. Professor Leung, who origi- 
nally came from Hong Kong, stressed that 
overseas Chinese should support the demo- 
cratic movement in Hong Kong since they, in 
particular, were free from political pressure. 
He also commented that the CRC, while 
emphasizing a smooth transition towards 
1997. seemed to overlook the opinions of 
grassroots communities in the territory. 
Representing the Forum's position, Eleanor 
Ng, strongly supported the proposals for 
political reform in Hong Kong. Arguing that 



support of the proposals did not necessarily 
mean support of Governor Patten, she indicat- 
ed that if Deng Xiaoping raised similar pro- 
posals, the Hong Kong Forum would also 
welcome that. 

Speakers from the audience predominant- 
ly supported the prososed reforms for Hong 
Kong; however, one person took the opposite 
position that as China is the "landlord" of 
Hong Kong and Britain, the tenant, "a tenant 
should follow the rules set up by a landlord." 

In January and February of this year, the 
Hong Kong Forum recently conducted a tele- 
phone opinion survey in Vancouver's Chinese 
community, focusing on the debate over con- 
stitutional reforms in Hong Kong. The results 
revealed that the majority of those who knew 
about the reforms supported them. However, 
surprisingly, over 36% of those Chinese- 
Canadians surveyed, even those who recently 
immigrated from Hong Kong, were unin- 
formed about the dispute and had no opinion. 



18 UPDATE 



On March 4. the Hong Fook Mental Health 
Association of Toronto presented a pro- 
gramme. "Passage to Canada." which featured 
the stories of Chinese Canadians, representing 
three different waves of migration - in the 
1920s. 1970s and 1980s. The program con- 
cluded w ith a panel discussion on the implica- 
tions for emigration of the return of Hong 
Kong to Chinese sovereignty and the future of 
the territory towards 1997. 

Three speakers related their personal expe- 
riences of immigrating to Canada - Cecil Ing. 
Eric Yu, and Peter Bok. One arrived 70 years 
ago as a poor, uneducated labourer, one came 
as a student almost 20 years ago and slowly 
established his career here: and the last speaker 
only immigrated four years ago and has just 
recently found a job in his field. Two of the 
speakers were from Hong Kong while Mr. Ing 
came originally from southern China. Each 
related a "story" of different challenges, includ- 
ing racial discrimination, status dislocation and 
language difficulties, as well as new experi- 
ences and opportunities. 

Representing the earlier wave of Chinese 
immigration at the beginning of the century, 
85-year old Cecil Ing explained that he came to 
Canada in 1923 and had to pay a $500 head 
tax. He arrived among the last two shipments 
before passage of the Chinese Immigration Act 
of 1923, which essentially excluded further 
Chinese immigration for over two decades, 
even for family reunification. 

Asked why he had left China. Mr Ing 
replied, "to make a better living" and that 
North America and Canada represented a 
"golden mountain." During his years in 
Toronto, he worked as a dishwasher in the 
1920s for $ 1 2 per week, 15 hours per day and 
seven days per week. During the height of the 
Depression, he worked as a waiter for only $6 
per week. It was not until 1938 that he found a 
better job as a waiter though "things did not get 
much better until after the war." When the 



"Passages to Canada" 

by Janet A. Rubinqff 

exclusion act was repealed in 1947. he worked 
hard to bring over his family from China, but it 
was not until 1968 that his wife and three 
daughters finally joined him. He now lives with 
his wife in an apartment for senior citizens. 

While Mr. Ing spoke in English, it was clear 
that he lacked fluency in the language even 
though he had lived in Canada for nearly sev- 
enty years. Some of the questions he was later 
asked by the audience also had to be translated 
for him into Chinese. His lack of facility with 
English reflects a time earlier in the century 
when there were few opportunities for Asian 
immigrants to improve their education and lan- 
guage skills or to integrate within the main- 
stream of Canadian life. As he himself 
explained there were no ESL classes or social 
service organizations in the Chinese communi- 
ty to help him adjust to life in Canada. 

As a young officer with the Royal Hong 
Kong Police Force. Eric Yu explained that he 
came to Toronto in the mid-1970s to study civil 
engineering. Though he felt that he had made 
considerable sacrifices and has had to work 
extremely hard to get ahead, he stressed that he 
is "still falling in love with this country." and 
that Canada has much to offer. 

On arriving in Toronto, he explained that 
his biggest problem was communication in 
English. To overcome his language difficulties, 
he watched "a lot of TV. and read local English 
newspapers." He also met many Canadian 
friends in high school and later in university 
who helped him integrate more successfully 
into Canadian society. His message to the new 
immigrants from Hong Kong and China is "to 
learn English and to communicate with the 
mainstream." 

Peter Bok. who is a social worker and a 
graduate of the University of Hong Kong, was 
the most recent immigrant of the three speak- 
ers. He came to Toronto in 1988 and spoke of 
his difficulties in finding a job and re-establish- 
ing his career in Canada. 



Experiencing the problem of status disloca- 
tion for main recent immigrants, he had left a 
good job in his field in Hong Kong to find him- 
self first working for $6 per hour in the ware- 
house of a tuxedo rental company, in order to 
feed his family. He lacked "Canadian experi- 
ence," and after much frustration finally landed 
a job as a data entry clerk on the night shift in a 
warehouse on Airport Road. He worked with 
several other "ladies whose typing skills were 
far better than my own." At the time, he men- 
tioned that his moral esteem had "reached a 
low point." To make ends meet, he also took a 
second job on the weekends, first as a bus boy 
and then as a waiter at the Prince Hotel. For 
three years, he worked seven days per week. 

Ironically, in Hong Kong part of his social 
work job was counselling prospective emi- 
grants who were leaving the territory. Asked 
why he had decided to immigrate himself 
along with his wife and two children, he 
declared that he was an "opportunist." With no 
friends or relatives in Toronto, he arrived with 
few contacts and not a great deal of money. 
Finally, a good opportunity arose and he was 
hired as an employment counsellor at 
Settlement House. Thus, it was not until recent- 
ly that he "could resume his career." 

The dinner meeting at a downtown vegetar- 
ian Chinese restaurant was concluded with a 
talk by Peter Chen on the future trends of 
immigration from Hong Kong and a discussion 
w ith all the speakers. Mr. Chen predicted that 
first of all many of the present astronauts in 
Hong Kong will return to Canada after 1997. 
Then immigration patterns f o Canada may 
change somewhat as Mainland Chinese, per- 
haps with less professional skills and different 
social backgrounds from present immigrants, 
come to Canada via Hong Kong. Mr. Chen felt 
that Canada and Hong Kong would continue to 
be major trading partners after 1997 and that 
immigration levels would remain high. 



Briefing on Hong Kong Budget 1993 



On March 3. Hong Kong's Financial 
Secretary, Hamish Macleod, tabled the gov- 
ernment budget for 1993-94 in the Legislative 
Council. On the same day, the Hong Kong 
Economic and Trade Office in Toronto held a 
luncheon briefing on the budget at the Royal 
York Hotel. 

Stephen Lam. director of the Office, and 
his colleagues Susan Luke and George Yuen 
presented an overview of the Hong Kong 



economy, business prospects, and programme 
of infrastructural developments. 

The briefing was attended by some one 
hundred prominent guests from government, 
business, professional, media, and academic 
circles of eastern Canada, as well as members 
of the Hong Kong-Canadian community. A 
lively period of questions and answers fol- 
lowed the presentation, and the discussions 
continued over lunch. 



The guests were impressed w ith the eco- 
nomic progress that Hong Kong has been 
achieving and with the scale of infrastructural 
and social spending. They also felt encour- 
aged about the prospects for Canadian partici- 
pation in Hong Kong's development projects. 
Many useful contacts were made at the meet- 
ing, and the Hong Kong budget was very well 
received in the Toronto press. 

UPDATE 19 



Cantonese Telephone Info 
Service in Toronto 

A Cantonese-speaking telephone 
information service went into operation 
recently in Toronto. By dialing a given 
number on a touch-tone phone, one gains 
access to a wide range of taped information. 

One can choose to listen to local Toronto 
news, world news, or Hong Kong news; 
Canadian financial bulletins or the latest 
about the Hong Kong stock market; local 
weather forecasts; Canadian government 
information; advice about nutrition, health, 
or recreation; short stories for adults or 
children; or a diverse selection of consumer 
information. 

The service was probably inspired by a 
similar service in English offered by the 
Toronto Star newspaper, and appears to be 
unique among ethnic communities in the 
city. It is free to the consumer and is 
financed by advertising. It is supported by 
a monthly magazine which is distributed 
free in the many Hong Kong-style shopping 
malls of Metro Toronto. Some 2,000 
advertisers were listed in the latest issue 
of the magazine. 



HK Christian Leader 
Visits Toronto 

Kwok Nai-wang, director of the Hong 
Kong Christian Institute, visited Toronto in 
mid-March as part of a North American tour. 
He was invited by the Canada China 
Programme of the Canadian Council of 
Churches to speak on "Hong Kong 1997: a 
Christian Perspective." 

Rev. Kwok is an ordained minister of the 
Church of Christ in China and has been 
active for many years in ecumenical and 
social justice work in Hong Kong. He is one 
of the best respected community leaders in 
the territory. 

In 1988 he resigned from his position as 
general secretary of the Hong Kong Christian 
Council, after the executive committee of the 
Council had consistently tried to acquiesce to 
the restrictive demands from the PRC on rep- 
resentative government, labour rights, and 
nuclear power in Hong Kong. Subsequently, 
he established the Hong Kong Christian 
Institute to promote education for justice, 
peace, and human rights. 

Last autumn, an ecumenical theological 
fellowship was formed in Hong Kong, in 
association with the Institute, to encourage 
theological, religious, and philosophical 
reflections and discussions on questions relat- 
ed to cultural heritage, faith, and democracy. 
The fellowship includes many members of 
Hong Kong's intellectual elite who happen to 
be Christians. 



DEATH DF 5ILVIH LEUNG 

Silvia Leung, a 22 year old student 
at the British Columbia Institute of 
Technology, was murdered on 
January 24 at the Burnaby campus 
of the college. She was struck in the 
shoulder by a projectile and died of 
blood loss. Silvia was the daughter 
of Lawrence Leung, director of the 
Hong Kong Immigration 
Department. 

The family moved to Vancouver in 
1989. Since August last year the 
family has been plagued by acts of 
vandalism, which included the set- 
ting of two fires at their home and 
the burning of a family car. 
Vancouver police have stated that 
there is no connection between Mr. 
Leung's position in Hong Kong and 
the murder. 

The police also denied reports in 
Hong Kong that police had not 
taken action over the earlier attacks 
on the Leungs because they were 
Chinese immigrants. This denial 
was supported by spokesmen for 
both the Chinese Benevolent 
Association and the Vancouver 
Association of Chinese Canadians. 

No one has yet been arrested in the 
case. Silvia Leung had been about 
to embark on a singing career in 
Hong Kong when she was killed. 



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North York, Ontario 

CANADA M3J 1 P3 







If CANADA AND HONG KONG UPDATE 



umber 10 



m % a m 



SUMMER 1993 



Hong Kong Capital Flows Into Canada 

by Susan Headers and Don Piltis • Oxford, U.K. 



According to the most cynical analysis, 
political uncertainly in Hong Kong is only 
good for the Canadian economy. The more 
troubled the investment climate in southern 
China, the more likely it is that money, some- 
times attached to its owner, will migrate to the 
safety of Canada, stimulating this country's 
economic growth. 

Without doubt the numbers, in absolute 
terms, are substantial. By one official estimate 
from the Canadian Commission in Hong Kong, 
as much as CDNS5 billion in Hong Kong capi- 
tal from all sources flowed into Canada in 1991 
alone. What is harder to calculate is how much 
benefit Canada actually sees from that consid- 
erable amount of Hong Kong money. By 1992. 
69 f r of the money invested in Canada under 
the controversial federal Immigrant Investor 
Program was real estate-based, capital that 
some critics argue creates few permanent jobs. 

Moreover, calculating how much Hong 
Kong money actually arrives and stays in 
Canada is not easy. The uncertainties stem in 
part from the way in which the government 
gathers statistics and. in part, from the com- 
plexity of the investment pattern - something 
Henry Yau of Investment Canada readily 



admitted. As he stated. 'There is really no way 
to estimate it because Canada does not require 
people to report what they are doing with their 
money." 

Government statistic-gathering methods 
may disguise the origin of an investment. 
Money brought by immigrants is one of the 
most important sources of Hong Kong capital 
entering Canada. However, because this money 
is brought in by someone now 'resident' in 
Canada, the government considers it domestic 
rather than foreign capital. If the capital comes 
from a company or person resident in Hong 
Kong - from the Cheong Kong empire of Li 
Ka-shing. for example - it shows up as 'for- 
eign' investment on the government's records. 

Even so, portions of both 'foreign' and 
'domestic' Hong Kong investment can be esti- 
mated with some certainty, revealing that Hong 
Kong capital has become an important contrib- 
utor in the Canadian real estate, energy, ser- 
vices, and manufacturing sectors. Although the 
economic development impact of this invest- 
ment remains controversial, the federal govern- 
ment has estimated that immigrant investors - 
the largest number of whom came from Hong 
Kong - contributed about half of the CDNS3.3 

Capital, cont'd page 2 



Patten's Constitutional 

Proposals and Sino- 

Hong Kong Relations 

by Bernard Luk 
York University, Toronto 

Just as the Update was going to press 
last April, it was announced that the PRC 
and UK governments would hold talks on 
the electoral arrangements for Hong Kong 
towards 1997. Beijing's willingness to 
engage in diplomacy, rather than strident 
attacks on the British side, broke the 
impasse which had developed over 
Governor Chris Patten's proposal last 
October to give Hong Kong increased, but 
still very limited, democracy before the 
transfer of sovereignty. 

The PRC authorities insisted that any 
constitutional development in Hong Kong 
must be congruent with three previous sets 
of documents produced by the two 
sovereign powers: the Sino-British Joint 
Declaration on the Future of Hong Kong 
ratified in 1985; the Basic Law of the 
Special Administrative Region of Hong 
Kong, promulgated by the Chinese govern- 
ment in 1990; and exchange of secret 

Proposals, cont'd page 2 



IN THIS ISSUE: 



Hong Kong Capital I 

Patten's Constitutional Proposals and 

Sino-Hong Kong Relations 1 

A Matter of Passports 7 

1992 Immigration Demographics 8 

Anglo-Chinese Confusion 10 

Hong Kong in the Chinese Press 10 

Triads: Notes from Hong Kong Press 11 

per 

F1029.5 
H6 C36 



Hong Kong Pop Singers 12 

Is Canada Losing Hong Kong Investment? 13 

Closure of Provincial Offices Abroad 14 

The Multinational Entrepreneur 

in Shenzen SEZ 15 

Seminar on Canadian Trade in Southern China 

and Hong Kong 16 



Metro-Toronto Week in Hong Kong 17 

Maintain or Reform: Dispute within CCC 17 

Tommy Tao: NDP Candidate 

for Vancouver Quadra 19 

News in Brief 20 

UBC Seminar on Hong Kong 21 

"City" by L. Ho 23 

Basic Reference Works on Hong Kong 24 



CANADA AND 
HONG KONG UPDATE 



Editors 


Diana Lary 




Bernard Luk 




Janet A. Rubinoff 


Illustration & 


IMSCreali\e 


Design 


Communications 


Contributors 


Susan Henders 




Paul Levine 




Sonny Lo 




Christina Mungan 




Don Pittis 




Hugh X. Tan 



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Canada and Hong Kong Project 
Joint Centre for Asia Pacific Studies, 
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York I niversity, 4700 Keele St., 
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Telephone: (416)736-5784 
Fax:(416)736-5688 

Opinions expressed in this newsjournal 
are those of the author alone. 



CANADA AND HONG KONG PROJECT 

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Wang Gungwu 



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Capital, cont'd from page 1 

billion in new venture capital available to 
Canada in 1989. 

Hong Kong investment has received more 
than its share of publicity because of its links 
with the hand-over of Hong Kong to China in 
1997 and with the migration of many of the 
territory's skilled and wealthy citizens to 
Canada. However, its overall contribution is 
overshadowed by the largest players. The 
United States, Europe, and Japan are Canada's 
major sources of foreign capital. Still, Hong 
Kong capital is second only to that of Japan as 
a proportion of growing Asian investment in 
Canada. According to one estimate. East Asia 
has accounted for about one-fifth of Canada's 
capital requirements since the mid-1980s. 

Although the exact overall size of Hong 
Kong capital flows into Canada remains elu- 
sive, various federal government sources reveal 
the outline of its components. 

Hong Kong Foreign Investment 

This category includes both direct and indi- 
rect investment made in Canada by Hong Kong 
residents. Direct investments (see Table 1 ) are 
those which give Hong Kong residents influ- 
ence in the management of an enterprise, usu- 
ally based on ownership of at least 10% of the 
company's equity. At CDNS137 billion from 
all world sources in 1991, direct investment is 



second only to bonds as the largest form of for- 
eign investment in Canada. [All subsequent 
figures are in Canadian dollars.] 

Hong Kong's direct investment in Canada 
grew from $8 million in 1961 to $19 million in 
1971, $87 million in 1981, and $2,306 billion 
in 1991 . As these figures exclude capital from 
other foreign or domestic sources used to lever- 
age the investment, they do not reflect the total 
book value of Hong Kong-controlled assets in 
Canada, which would likely be several times 
greater. For example, in 1987. the last year 
Statistics Canada kept track of such figures. 
Hong Kong direct investment in Canada was 
recorded as $619 million. [This figure has 
since been revised. Thus, the total is different 
from the total for 1987 which appears in Table 
1.] The total assets of Hong Kong-controlled 
direct investments in Canada was much higher, 
estimated at S2.3 14 billion. 

At the end of 1991. the Pacific Rim 
accounted for $9,217 billion in direct invest- 
ment in Canada, nearly 79r of the total from all 
countries and more than double its share of the 
total in the mid-1980s. Japan and Hong Kong 
were Canada's largest direct investors from the 
region, investing $5,345 billion and $2,306 bil- 
lion, respectively, at 1991 year end. Hong 
Kong's total accounted for nearly 2% of all for- 
eign direct investment in Canada, up form a 



Proposals, cont'd from page 1 

diplomatic notes during 1988-90 between the 
two governments. Beijing was insistent that 
Patten's proposals infringed on these docu- 
ments but refused to be specific about where 
the infringements were. 

The UK government was equally insistent 
that the proposals did not infringe on any pre- 
vious agreement or promulgation, but only 
filled in the gaps in accordance with the spirit 
of the Joint Declaration. Governor Patten 
indicated from the beginning that he was pre- 
pared to negotiate on specific provisions, but 
that the outcome of any negotiation must pro- 
vide for fair elections and be acceptable to the 
people of Hong Kong. 

Sino-British Talks 

The talks have been held in Beijing 
between the Chinese vice-foreign minister, 
Mr Jiang Enzhu. and the British ambassador, 
Sir Robin MacLaren. Beijing would not rec- 
ognize ethnic Chinese officials of the Hong 
Kong government as members of the British 
delegation, so formally each side is represent- 
ed only by its leading member, while other 



officials on either side are technically special- 
ists/advisers. 

Beijing did not want the press to cover the 
negotiations but relented after protests from 
the Hong Kong media. Nevertheless, there 
was confusion at the opening of the first 
round in April, when reporters were denied 
the customary photo opportunity in the meet- 
ing room and were not permitted to observe 
the seating arrangements on the two sides of 
the table. Afterwards, the restrictions were 
relaxed a little, and reporters have been 
allowed a few minutes in the meeting room at 
the beginning of each session. (Team leaders 
and their specialists/advisers sit together at 
the table.) 

It was agreed by the two sides before the 
talks that there would not be any press com- 
muniques after each round. Indeed, neither 
side would divulge what had been discussed, 
except for platitudes like "some progress has 
been made." The Hong Kong community 
(including its Legislative Council), not for the 
first time, has been kept in the dark by its 
sovereign masters about what is being 



2 UPDATE 



mere 0.2' < in the mid-1980s. Its share was still 
only a drop compared to the SN3.S billion 
(61* i ) held b) US investors and $36.5 billion 
( nearly 27' < I held hv European investors in 
1991. Hong Kong direct investment is especial- 
ly strong in real estate, particularly the hotel 
industry', oil and gas. and manufacturing, where 
important investments have been made in tex- 
tiles and electronics, according to government 
sources. 

Direct investment includes contributions 
by Hong kong residents to incorporated real 
estate, such as hotels or larger commercial 
property. It does not include foreign invest- 
ments in unincorporated or privately held 
real estate, where Hong Kong-resident 
investors also played a significant role. At 
the end of 1 99 1 . foreign investors had con- 
tributed S4.3 billion to privately held real 
estate in Canada. Approximately S2.6 bil- 
lion, or nearly 61% of the total, came from 
Hong Kong-resident investors, according to 
Frank Chow of Statistics Canada. Bank 
financing and other leveraging would reveal 
the total book value of Hong Kong contribu- 
tions in unincorporated real estate as several 
times higher. Real estate investments by 
Hong Kong immigrants would push the total 
hieher still. 



Table 1: Hong Kong Direct Investment In 
Canada (in millions of dollars) 



Year 


Total 


Year 


Total 


1960 


- 


1976 


41 


1961 


8 


1977 


54 


1962 


8 


1978 


64 


196? 


8 


1979 


49 


1964 


9 


1980 


51 


1965 


10 


1981 


87 


1966 


9 


1982 


117 


1967 


10 


1983 


137 


1968 


15 


1984 


168 


1969 


18 


1985 


170 


1970 


20 


1986 


426 


1971 


19 


1987 


631 


1972 


26 


1988 


1(X)7 


1973 


25 


1989 


1100 


1974 


18 


1990 


1309 


1975 


34 


1991 


2306 


Sow i 


Statistics Canada 







Portfolio investments - those which do not 
give the buyer a management role in the com- 
pany - make up a second major category of 
foreign Hong Kong capital in Canada. Known 
as indirect investments, the category includes 
purchases of equities below the 10% threshold 
and investments, such as public and private sec- 
tor bonds, debentures, long-term notes, and 



such money market instruments as Govern- 
ment of Canada treasury bills and Canada bills. 

Exact figures for Hong Kong indirect 
investments arc unavailable because of 
Statistics Canada reporting methods and 
because Canadian issuers are sometimes unable 
to identify the ultimate foreign owners. As 
Frank Chow indicated. Hong Kong resident 
investors are relatively small players in a field 
overwhelmingly dominated by investors who 
reside in the L'S. Japan, the L'nited Kingdom, 
and other European Community countries. 
Only about $15.2 billion (6«H I of all foreign 
non-direct purchases of stocks and bonds are 
held by investors outside these regions. Hong 
Kong holdings are a part of this total, but no 
one knows how much. 

Excluding these indirect investments, the 
government estimates that Hong Kong-resident 
investors accounted for S4.9 billion in direct 
investment and unincorporated real estate hold- 
ings in Canada at the end of 1 99 1 . 

Hong Kong Immigrant-Source Capital 

'Domestic' Hong Kong investment is made 
up of the capital Hong Kong immigrants - 
whom Statistics Canada categorizes as 
Canadian residents - bring with them when 
they come to Canada and invest in that country 

Capital conl'd page 4 



planned for it. Nevertheless, the community 
as a whole is relieved at the suspension of the 
fireworks from PRC officials which predomi- 
nated during the winter and early spring. 

Effects on Hang Seng Index 

Meanw hile. the stock market took heart 
from the fact that the two sovereign powers 
are at least talking to each other, and the 
Hang Seng Index resumed its interrupted 
climb. It had stood at about 4800 at the begin- 
ning of 1992. It rose steadily through the year 
and continued to climb last October after 
Patten first made his constitutional proposals, 
reaching a peak of nearly 6500. When 
Beijing began its diatribes and indicated it 
might not honour contracts awarded by the 
Hong Kong government, the index dropped 
below 5000 in December. The rise resumed 
after the new : year and was at about 6800 
when the talks began in April, reaching a new 
peak of above 7500 towards the end of May. 

By any standards the rise of the Hang 
Seng Index during the past one and half 
years, despite the temporary setbacks, has 



been spectacular. It was helped, inter alia, by 
US President Clinton's decision in late May to 
renew 5 the Most Favoured Nation treatment for 
the PRC, unconditionally for another year. 
(Governor Patten, on his visit to the White 
House and Congress in May. pleaded w ith 
American politicians not to impose trade 
restrictions on China.) The exuberant business 
atmosphere contrasts sharply w ith the social 
and political sense of helplessness and gloom. 

Other Sino-British Contacts 

The constitutional negotiators met in 
Beijing for seven rounds between April and 
June, and could not come to any conclusions. 
However, those meetings made it possible for 
other Sino-British talks to take place. 

The joint committee on the new airport 
scheme resumed its work after a break of half 
a year and reached agreement in late June on 
one of the major projects of the scheme, the 
Western Harbour Crossing. The rail and 
road tunnel is estimated to cost HKS7.6 bil- 
lion (CDNS1.3 billion). The committee 
awarded the buildins contract, with a thirtv- 



year monopoly, to a consortium made up of 
PRC state-owned enterprises (about 60Ti ) 
and Hong Kong capitalists. The proposed 
contract contains some unusual features. For 
instance, the permitted rate of return (18.5%) 
of the Western Crossing will be much higher 
than with the existing tunnels and other utili- 
ties. It will also have the unprecedented right 
to raise its tolls automatically once its profits 
fall below a certain percentage. 

The Joint Liaison Group, which is the 
ambassadorial committee stipulated in the 
Joint Declaration to work on the diplomatic 
details necessitated by the 1997 transfer, also 
met again in June after a hiatus of several 
months. However, the atmosphere w as 
strained throughout its three-day meeting, and 
the two sides could not agree on any major 
issue, such as the conversion to civilian use of 
certain lands in Hong Kong now occupied by 
the British military and the award of the con- 
tract for Container Terminal No. 9 (the dis- 
pute over which brought a sharp fail of the 
Hang Seng Index last winter). 

Proposals, cont'd page 4 
UPDATE 3 



Capital, cont'd from page 3 

as part of immigration requirements. 

The bulk of the money comes from business 
immigrants, who include: 1 ) entrepreneurs, or 
people with business expertise and capital who 
buy or establish a business which they must 
manage and which must create at least one job 
for Canadians; 2) investors, who are admitted 
under the Immigrant Investor Program, must 
have a personal net worth of $500,000-700,000 
and, invest for five years $250,000-350,000 in 
an approved business syndicate or a private or 
provincial government-administered venture 
capital fund; 3) and self-employed individuals, 
who must establish or buy a business in Canada 
which creates employment for themselves and 
contributes to Canada's economic, cultural, or 
artistic life. 

Money invested to fulfil the immigration visa 
requirements under the Immigrant Investor 
Program (HP) is the only portion of this immi- 
grant capital which can be quantified with any 
certainty. Unlike other investments, those made 
under the IIP are locked in for five years. 

Since the program's inception in 1986, 
Hong Kong immigrants have contributed 
approximately 40% of the nearly $2 billion 



subscribed under the IIP by the end of last year, 
according to Guy Pilote of the Business 
Immigration Branch, now part of the new 
Ministry of Public Security. Southeast Asia is 
Canada's major source of immigrant investors, 
with Hong Kong accounting for 45.2% and 
Taiwan for 42.3% of all IIP participants in 
1992. The government estimates that the pro- 
gram had created direct employment in excess 
of 10,000 jobs by mid-1991. 
Despite the accomplishments of this 'cash-for- 
visa' program, the IIP has recently come under 
attack from Canadian critics and some immi- 
grant investors, who accuse the government of 
lax management and some private fund pro- 
moters of misrepresentation and even fraud. 
The Manitoba government has withdrawn from 
the program and turned the allegations over to 
its Crown prosecutors. Other provincial gov- 
ernments have said they are reviewing their 
role. Critics note that jobs created under the UP 
have largely been in construction and the low- 
wage service sector, raising questions about the 
long-term benefits for the Canadian economy. 

The federal government, which recently ini- 
tiated regulatory reforms to tighten up the pro- 
gram, has also admitted the IIP is in trouble. In 



1992, a report from the federal Ministerial Task 
Force on the Immigrant Investor Program was 
leaked to the media and stated that Canada 
would lose billions of dollars and its reputation 
as a good place to invest if the program were 
not significantly reformed. The report conclud- 
ed that "[A] good number of [IIP] investments 
are of questionable value." and far too many 
were in real estate. "[R]eal estate investments 
do not normally create a substantial number of 
permanent jobs," and "most real estate projects 
can be financed through conventional sources." 
Therefore, more effort should be made "to 
ensure that funds are better targeted to job cre- 
ating sectors of our economy." 

The Task Force report also accused the pro- 
gram of neglecting the human capital side of 
economic development, paying too much atten- 
tion to applicants' money and not enough to 
their business acumen, skills, and experience. It 
warned. "Although important, financial consid- 
erations alone should not form the basis for 
selection of an investor applicant. Without the 
business expertise factor, it is quite probable 
that one would see the advent of revolving 
funds aimed solely at equipping unqualified 

Capital, cont'd on page 6 



Proposals, cont'd from page 3 

It could only concur on relatively minor 
issues, such as bilateral investment protec- 
tion agreements between Hong Kong and 
Australia and Sweden. Many urgent prob- 
lems remain outstanding. These include 
some one hundred multilateral agreements 
to which Hong Kong has adhered as a 
British Dependent Territory and which 
would require Si no-British concurrence for 
Hong Kong to participate beyond 1997 on 
its own. There are also many bilateral agree- 
ments between Hong Kong and other coun- 
tries which require the blessing of the two 
sovereign powers. The Joint Liaison Group 
adjourned without fixing a date for its next 
round, and the two sides accused each other 
of insincerity and delaying tactics. 

HK-PRC Economic Links 

In the mean time, the economic connec- 
tions between Hong Kong and the PRC con- 
tinued to multiply, and the erratic behaviour 
of the Mainland economy has become the 
focus of concern. For the past few years. 
Communist Party cadre-capitalists have been 
investing heavily in the Hong Kong stock and 
housing markets and have been encouraging 
Hong Kong capital to invest on the Mainland. 



Some observers have expressed the concern 
about these two-way investments involving 
PRC officials or their family members. 

Last winter, there were allegations that the 
Hong Kong and Macau Office of the State 
Council (the PRC cabinet-level agency in 
charge of Hong Kong affairs) was engaged in 
joint ventures with capitalists who were privi- 
leged with insider information about the tim- 
ing of Beijing's diatribes against Patten, and 
were enabled to play the stock market with 
advantage. Such allegations were promptly 
denied by Lu Ping, director of the Office. 

More to the point is the monetary crisis 
in China. The rapid economic expansion 
there during the past few years has generated 
intense inflationary pressures. The lack of 
healthy financial structures and the ability of 
cadre-capitalists to use political/administra- 
tive maneuvers to bypass many government 
regulations, resulted in loss of control over 
the currency, the renminbi. The renminbi 
depreciated against the US dollar by some 
20% within ten days. Part and parcel of the 
problem was that the renminbi, not a hard 
currency, has several different exchange rates: 
an official rate, different rates at each of sev- 
eral official currency clearinghouses (swap 



markets) in various parts of the country, and 
black market rates as well. 

The sharp downturn of the renminbi has 
been watched with grave concern in Hong 
Kong. In addition to trade between the two 
territories in goods and services, some of 
which is denominated in renminbi, there are 
other financial dealings which could be 
affected. In the Hong Kong stock market, 
the share prices of many of the so-called 
China-concept companies and of empty- 
shell Hong Kong registered companies 
bought by Mainland firms for trading in 
Hong Kong, fell sharply. PRC state-owned 
enterprises, such as Tsingtao Beer and 
Shanghai Petrochemicals, which became 
listed in the Hong Kong Stock Exchange 
after many months of preparation, did not do 
as well there as expected, even though their 
shares were still oversubscribed. Visits by 
Mainland tourists to Hong Kong, which 
numbered over a million in 1992, are pro- 
jected not to increase quite as rapidly as 
before the depreciation. 

By early July, the PRC authorities were 
taking steps to halt the depreciation. The gov- 
ernor of the People's Bank was dismissed, 
replaced by Deputy Premier Zhu Rongji (who 



4 UPDATE 



just returned from a tour of Canada, where he 
was \er\ well received bj the Toronto and 
Vancouver business community). 
Government intervention, with a combination 
of monetary and administrative measures. 
brought up the exchange rale sharply, hi 
Hong Kong, the sense of uncertainty has not 
been dispelled. While there is a consensus 
that a proper re-structuring of the financial 
system in the PRC would be good in the long 
term for both China and Hong Kong, there 
are no clear signals that this is taking place, 
or how far the retrenchment would go. In the 
short run. the fairly violent downs and ups of 
the renminbi have the immediate effect of 
withdrawing, for political/administrative rea- 
sons, a good deal of cadre-capitalist money 
from the Hong Kong market. 

In addition to the economic uncertainty, 
there have been reports of a number of small 
scale protests or rampages by hard pressed 
peasants in different parts of China. These 
were forcefully suppressed by the authorities. 
The peasants had been paid promissory notes 
rather than cash by government purchasing 
agents and could not make ends meet. By 
early July, peasant rioting had been reported 
in eleven provinces in China. The widening 
gap between the haves and the have-nots in 
China is common knowledge in Hong Kong 
and could not but give rise to a sense of fore- 
boding. The euphoria about the China market 
has been dampened, and the Index has been 
fluctuating between 6700 and 7000 in recent 
weeks. It also remains very sensitive to news 
about the various Sino-British negotiations 
over Hong Kong's economic, political, and 
legal development. 

Sino-British Trade Expansion 

In spite of all the diplomatic difficulties 
between Beijing and London, trade between 
the two sovereign powers continued to grow, 
expanding by some 70% during the year 
since Patten became governor. In June, top 
officials of the Jardine Group visited China 
and returned with optimistic news. The 
largest British commercial firm based in 
Hong Kong (now with its legal headquarters 
in Bermuda), Jardines had came under vehe- 
ment attack from the PRC last winter for sup- 
porting Patten's constitutional proposals. 

Lack of Progress in Talks 

Meanwhile, the government and public in 
Hong Kong have become increasing impa- 
tient with the lack of progress in the Beijing 
constitutional talks. As the legislative year 
draws to a close and time is running short to 



prepare for the Legislative Council and local 
elections in 1444 and 1995, decisions will 
have to be made very soon about Patten's pro- 
posals on expanding the franchise and con- 
stituencies of those elections. In the latter part 
of June, it was learned that one of the main 
impediments in the talks has been the idea of 
the "through train" — the desire in Hong Kong 
that legislators elected in 1995 would be 
allowed to straddle the transfer of sovereignty 
and serve till 1999 — and the wish in Beijing 
not to have certain pro-democracy leaders sil 
in the Hong Kong legislature after 1997. It 
seemed that the two sides had spent se\ en 
rounds debating generalities, and the PRC 
team would not make counter-proposals to 
Patten's plan. 

At the end of June. Governor Patten flew 
to London with Hong Kong officials who 
have attended the Beijing talks, for consulta- 
tions with the British cabinet. After the meet- 
ings, the British government re-affirmed its 
support for Patten's proposals and for the 
strategy of the British side in the Beijing 
negotiations. However, it was later 
announced, on very short notice, that Foreign 
Secretary Douglas Hurd would go to Beijing 
after the G7 summit in Tokyo, to meet with 
his Chinese counterpart. Qian Qichen. in the 
hope of facilitating the talks. Opinion was 
divided in Hong Kong on whether Hurd was 
going to make major concessions. So far. this 
has not turned out to be the case. The two for- 
eign ministers apparently have agreed to 
focus future constitutional talks on the issues 
of the "through train." the functional con- 
stituencies, and the electoral committee. This, 
together with the reported willingness of the 
PRC delegation finally to make concrete 
counter-proposals, gave rise to some opti- 
mism about the talks. 

However, the eighth round, held in July, 
still produced no concrete results, and hopes 
are now pinned on the ninth round. Patten had 
more consultations with Hurd and indicated 
that, even if the negotiators in Beijing should 
still fail to come to any conclusions, he would 
have to make decisions about the 1994 and 
1995 elections when he delivers his second 
annual policy address in the autumn. 

Role of HK Pro-Democracy Groups 

Throughout the past three months since 
publication of the last Update, pro-democracy 
groups in Hong Kong, especially the United 
Democrats of Hong Kong (UDHK), have 
generally kept a low- profile in facing attacks 
from the PRC. A few junior members of the 
UDHK have defected to other pro-democracy 



groups which have been less ostracized by 
Beijing Some leaders of these othet 

are wooed by PRC officials as possible coun- 
terweights to the UDHK. The UDHK as a 

whole has held linn and has retained its posi- 
tion as the most popular Hong Kong political 
party in a number of opinion polls conducted 
by the mass media. Interestingly, in another 
poll of secondary school pupils in a working 
class district. Patten was rated the most popu- 
lar political figure, followed by pro-democra- 
cy legislators. Emily Lau and Martin Lee. 
The teenagers rated PRC official Lu Ping the 
most unpopular, followed by Maria Tarn (a 
former member of the Executive and 
Legislative Councils under Governor Wilson. 
who left the Councils after a conflict of inter- 
ests scandal). Patten was also given third 
place! 

The Legislative Council is now debating 
the terms of the Western Harbour Crossing 
contract. Councillors across the political 
spectrum are unhappy about what they con- 
sider to be too favourable terms for the 
investors at the expense of the public. On its 
part, the consortium awarded the proposed 
contract would not accept any change in the 
terms already agreed to by the two sovereign 
powers. In Beijing, the Committee estab- 
lished by the PRC government to prepare for 
the Organizing Committee [see B. Luk. 
"'Update on Governor Patten's Policy 
Address." Canada and Hong Kong Update, 
no. 9. Spring 1993. p.3.] met for the first time 
under the chairmanship of Foreign Minister 
Qian Qichen. Mainland and Hong Kong 
members were all appointed by the PRC gov- 
ernment. A member of the committee 
promptly began to attack Martin Lee and 
other pro-democracy legislators as unpatriotic 
and unfit for the "through train." 

At the same time. Hong Kong's Financial 
Secretary announced in Legco that the 
Exchange Fund of Hong Kong now stood at 
HKS287 billion (CDNS48 billion), taking the 
territory from twelfth to tenth place in the 
world. Simultaneously, the Independent 
Commission Against Corruption reported on 
widespread anxiety in the community about 
an increase of corruption in public and private 
concerns towards 1997 and beyond. 

As the Update goes to press, a new round 
of talks on electoral arrangements is being 
held in mid-August, amidst threats from cer- 
tain PRC officials to take over Hong Kong 
before 1 997. The stock market apparently 
disregarded the threats. 



UPDATE 5 



Capital, cont'd from page 4 
applicants with the capital necessary to pass 
themselves off as qualified business persons." 
Despite these problems, investment capital 
entering Canada through the program has been 
especially important in poorer provinces, where 
it is the largest pool of venture capital available. 
The overwhelming majority of immigrant 
investors - 92% - still choose to live in British 
Columbia, Ontario, and Quebec when they land 
in Canada. However, the Atlantic provinces, 
Saskatchewan, and Alberta were able to attract 
just less than half of the nearly $2 billion in sub- 
scriptions made under the program between 
1986 and March 1993 (see Table 2). 

Table 2: Distribution of Funds Subscribed 
Under the Immigrant Investor Program, 
Jan. 1, 1986 to March 31, 1993 



Province 


Total (%) 


Quebec 


28.0 . 


Saskatchewan 


19.6 


British Columbia 


13.1 


Manitoba 


9/> 


Nova Scotia 


7.9 


Prince Edward Island 


6.0 


Ontario 


5.5 


New Brunswick 


3.9 


Alberta 


3.6 


Newfoundland 


2.4 


Northwest Territories 


0.2 


Yukon 


0.0 


Sonne: Employment <uul fmmigrarioi 


Canada 



The Task Force report noted that the IIP had 
been less successful in getting investor funds 
into the more remote and poorest regions of 
both poor and rich provinces. Instead, most of 
the funds went to provincial capitals and urban 
centres. Nevertheless, without the IIP, very little 
of the money Hong Kong immigrants bring 
with them would be invested outside Quebec. 



British Columbia, Ontario, or Alberta. For 
example, among other non-investor business 
immigrants, approximately 95% of entre- 
preneurs and 93% of self-employed immigrants 
settle in these four provinces, indicating the 
majority of their business investments were 
likely made in these same provinces. 

The benefits Canada is gaining from other 
types of capital brought in by Hong Kong 
immigrants is much more difficult to quantify 
than the IIP funds. Hong Kong immigrants 
undoubtedly bring other money with them, 
some of which they invest in such things as 
homes, cars, stocks, and businesses. For 
instance, some of the biggest money comes 
from business immigrants in the investor and 
entrepreneur categories. They bring an average 
of $ 1 million each, according to John Martin of 
the Business Immigration Program. 

The government keeps two kinds of statis- 
tics on these immigrant transfers of money to 
Canada, neither of which gives a reliable indi- 
cation of how much immigration-related cap- 
ital ends up invested in Canada. Before 
departing for Canada, immigrants issued 
visas or permits must make a declaration of 
their "total money" i.e., how much money 
they have already transferred, will transfer, or 
will have in their possession upon their 
arrival. The government estimates that all 
Hong Kong immigrants granted visas or per- 
mits between January 1988 and December 
1992 declared $18.1 billion in total money, an 
average of nearly $500,000 each (see Table 3 
below). Although the figure theoretically rep- 
resents the immigrants' total net worth. Guy 
Pilote of the Business Immigration Branch 
said it probably underestimates their assets 
and does not necessarily indicate how much 
money they eventually transfer to Canada. 

"We don't ask them to empty their pockets 
and show us what they have," he said. "No one 
walks on the street with a tag saying they are 
worth so many dollars." 



The federal government also keeps records 
of the funds immigrants declare they are bring- 
ing with them when they arrive at a Canadian 
port of entry. For example, the government esti- 
mates that the 3,157 Hong Kong business 
immigrants who landed at Canadian ports of 
entry in 1992 declared about $120,000 each, or 
a total of $379,368 (see Table 4). Details of 
funds declared by Hong Kong business immi- 
grants over the last several years were not avail- 
able at press time, but figures for business 
immigrants from all countries hint at the sums 
involved. The government estimates that the 
27,220 business immigrants who entered 
Canada between 1987 and 1992 from all coun- 
tries - roughly half of whom came from Hong 
Kong - declared a total of $2.8 billion at ports 
of entry, an average of $102,216 each. 

These figures do not indicate the individu- 
al's net worth, as few immigrants bring all of 
their assets to Canada. However as Pilote con- 
cluded, the figures understate the money immi- 
grants transfer as they exclude immigrant 
investor capital in IIP funds and syndicates and 
probably underestimate the total pool of capital 
entrepreneur immigrants eventually invest in 
Canada. 

Table 4: Hong Kong Business 
Immigrants, Total Funds in Possession 
at Ports of Entry, Jan.-Dec. 1992* 
(Principal Applicants Only) 

Aver./ Total # 
Total $ person of Immi- 
($*000's) ($'000's) ofgrants 



Entrepreneurs 


237,598 


121 


1,962 


Self-Employed 


22.637 


112 


202 


Investors 


119,133 


120 


993 


Total Business 


379368 


120 


3,157 


Immigrants 









* Preliminary figures only. 

Source I mploymeni and Immigration Canada 



Table 3: Total Money* for Immigrants Granted Visas or Permits, CLPR Hong Kong 



Year 



Total Visas, 
All Classes 



Sum of Total Money, 

All Immigrants 

($ '000's) 



Average Total Money 

by Selected Classes 

($ '000's) 



Aver. Total Money 
All Classes 

( '000's) 



Retired Independ. 



Assist. 
Rel. 



Family 



Investors Entrepren. Self- 
Employ. 



1992 


11.731 


5.323,090 


1102.99 


173.08 


255.29 


9.05 


1991 


9,900 


4.192,662 


976.02 


161.94 


221.01 


28.68 


1990 


8.742 


3,690,536 


1358.67 


179.22 


172.03 


64.54 


1989 


9.494 


2,563.509 


854.49 


163.19 


136.64 


52.31 


1988 


9.391 


2,329.062 


830.38 


95.95 


66.37 


60.87 



1580.04 824.04 526.44 453.76 

1521.29 1038.70 550.28 423.50 

1655.99 983.55 550.39 422.16 

1543.00 831.05 387.83 270.01 

1579.28 840.64 359.49 248.01 



*Total money means money already transferred, to be transferred, and in possession on arrival. 
Source: Employment and Immigration Canada 



6 UPDATE 



A Matter of Passports 

by Bernard Luk 
York University, Toronto 



In the run-up to 1997. millions of Hong 
Kong people will be entitled to hold two 
■"British" passports issued by the Hong Kong 
government at the same time. Both are dis- 
tinct from the British passports of United 
Kingdom citizens, which indicate full British 
citizenship and right of abode in the United 
Kingdom. At British border control points. 
holders of UK and European Community 
(EC) passports wait in one line, while holders 
of Hong Kong "British" and other passports 
wait in another line. 

Under the British Nationality Act adopted 
by the Westminster Parliament in 198 1 . citi- 
zens of Hong Kong are entitled to "British" 
passports, which describe them as British 
Dependent Territories Citizens (BDTC). 
They enjoy the right of abode in Hong Kong 
but may be required to apply for an entry per- 
mit before travelling to the United Kingdom. 
The Hong Kong BDTC passport is a widely 
recognized travel document, and its holder 
could travel to many countries, including 
Canada and most of the European 
Community, as a tourist without a visa. 

When Hong Kong ceases to be a "British 
Dependent Territory" on 1 July 1997. the 
Hong Kong BDTC passport will automatical- 
ly lose its validity. An exchange of memoran- 
da, appended to the Sino-British Joint 
Declaration on the Future of Hong Kong, 
made special provisions for passports. It stip- 
ulated that the UK government would issue 
British passports which would remain valid 
after the transfer of sovereignty, to persons 
born before that date, on account of their con- 
nection with Hong Kong. The PRC govern- 
ment would permit Hong Kong people to 
hold that travel document but would not rec- 
ognize it as a passport implying British 
nationality. Subsequently, the British govern- 
ment adopted measures for a new class of 
passports, known as the British National 
Overseas (BNO) passport, for this purpose. 

The Hong Kong government has been 
issuing BNO passports since the late 1980s. 
Passport applicants could choose freely 
between the BDTC and the BNO. The over- 
whelming majority have chosen the BDTC 
because it is believed, with some justification, 
that a number of third countries do not recog- 



nize the BNO on par with the BDTC, making 
it necessary for BNO-holders to apply for 
visas. The case is often cited of a Hong Kong 
family, travelling from Germany to Canada a 
few months ago. that was refused boarding by 
the airline because members of the family 
held different versions of British passports. 

As 1997 approaches, the Hong Kong go\ - 
emment is faced with the administrative 
nightmare of having to issue more than two 
million BNO passports during the last few 
months before the transfer, to people who 
wanted to hold on to their BDTC passports 
until the last minute. Earlier this year, the 
Executive Council decided to require BDTC 
passport holders to trade in their passports for 
the BNO between 1993 and 1997. according 
to a schedule based on one's year of birth. 
This decision met with a storm of protests 
from the community and the Legislative 
Council. The government's logistical difficul- 
ties were appreciated, but the enforced 
change was also seen as depriving Hong 
Kong people of their citizenship rights ahead 
of time. 

After meeting with a Legco delegation 
representing different ends of the political 
spectrum, and probably with intervention 
from Governor Chris Patten, the British 
Home Secretary decided in June that the 
BNO passports would still be issued only 
according to the year-of-birth schedule. 
However, applicants for the new passport 
would also be allowed to retain their BDTC 
passports until 1997. In other words, one 
could hold both "British" passports at the 
same time. It was anticipated that some con- 
fusion may result where border control offi- 
cers in different parts of the world may not be 
aware of the unusual circumstances, and the 
Hong Kong government has advised its peo- 
ple not to use both passports for the same 
country. 

Where Hong Kong's own border control is 
concerned, there should not be any problem 
because Hong Kong people leave and re-enter 
the territory with the computerized Hong 
Kong Permanent Resident Identity Card. 
which will remain valid beyond 1997. rather 
than w ith any passport. 

In addition to the "British" passports, the 
Hong Kong government also issues the 



Certificate of Identity (CI) to permanent 
residents (formerly known as "Hong Kong 
Belongers") who were not born in Hong 
Kong, were not BDTC b> anj other means. 
but have resided legally in the territory for 
more than se\en years and do not hold any 
national passport. Permanent residents enjoy 
right of abode and other civil and political 
rights of citizenship within the territory of 
Hong Kong. There are more than a million 
CI holders, mostly ethnic Chinese residents 
of Hong Kong who prefer not to travel with 
passports issued by the Mainland or Taiwan 
authorities. In international law. the CI is 
considered a "statelessness" document; 
but in fact it is widely recognized around 
the world as something like the American 
"green card" from Hong Kong, although 
visas are required for travel to most 
countries. 

Again, there is a Document of Identity 
(DI), issued by the Hong Kong government, 
usually to immigrants from the PRC who 
needed to travel overseas before they had 
attained the status of permanent residents of 
the territory. Holders of the CI and DI are not 
affected by the policy on BNO passports. 

According to the Joint Declaration, after 
1997 Hong Kong people could travel with 
passports issued by the PRC authorities or by 
the Hong Kong Special Administrative Region 
authorities. However, no details of proposed 
arrangements have been published so far. 

Meanwhile, ethnic Chinese from Hong 
Kong can apply for passports for international 
travel from either the Mainland or Taiwan 
authorities (or both), and some people have 
done so. Taiwan recognizes dual nationality, 
while the PRC does not. The legal issues 
could be tricky, and most people prefer not to 
involve themselves. In any case, the PRC 
considers all Hong Kong people always to 
have been its citizens and does not recognize 
the BDTC. On both sides of the Taiwan 
Straits, the authorities issue passport- 1 ike 
identity documents for multiple entry, that 
permit Hong Kong people to "return to the 
Fatherland" under their respective control. 

All this multiplicity of passports and cer- 
tificates underline the complexity and pathos 
of the political situation in which Hong Kong 
people find themselves. 



UPDATE 7 



1992 Hong Kong Immigrants Landed in Canada: Demographics 



by Diana Lury 
UBC, Vancouver 



The 1992 numbers for immigrants from Hong Kong landed in 
Canada showed a major jump from the figures the year before. The 
1992 figure of 38.841 represented an increase of 74% over the 1991 
figure of 22.329. and a 34% increase over the 28.949 figure for 1990. 
[The present figures date from June 1993. Figures published in the 
last Update were run in February 1993. The increase between 
February and June comes about because figures are still being col- 
lected at the beginning of the year.] 

The changes in demographic characteristics are less dramatic than 
the change in overall numbers. The male:female ratio has hardly 
changed over the past five years, nor has the marital status of immi- 
grants. The gradual rise in age of the immigrant group has continued. 
The downward trend in knowledge of official languages has continued, 
as has the decline in levels of educational achievement. Levels of lan- 
guage and educational attainment vary considerably by class of immi- 
grant, with the highest levels associated with the independent class. Low 
levels are associated with the business classes (investor, entrepreneur 
and self-employed). These are also the classes in which the ratio of 
workers to non-workers is highest, i.e. the principal immigrants are 
accompanied by the largest number of non-working dependents. 

Male/Female ratio 

The male/female ratio in 1992 continued to favour women. It 
declined slightly from the 1991 ratio of 53:47 (womemmen). to 52:48, 
still higher than the 1 990 ratio of 5 1 :49. 

Total 



Male 



Female 



8 


11.142 


9 


9.396 





14.154 


1 


10.505 


2 


18,785 



12.139 
10.465 
14,790 
11,824 

20.056 



23.281 
19,861 
28.949 
22,329 
38,841 



Marital status 

The proportion of married people in the Hong Kong immigrant 
group landed in 1992 declined very slightly to 47% of the group, from 
49% the year before. 



1988 



1989 



1990 



1991 



1992 



Single 

Married 

Widowed 

Divorced 

Separated 



10914 

11645 

503 

168 

51 



9603 
9656 

437 
118 
47 



14269 

13837 

613 

177 
53 



10227 

10745 

1154 

140 
63 



18511 

18387 

1629 

231 

83 



Total 



23281 



19861 



28949 



22329 



38841 



Ages 

The trend towards older immigrants from Hong Kong has contin- 
ued. In 1988, only 15% of new immigrants were over 45: by 1992 this 
proportion had more than doubled, to 32% . The age range of immi- 
grants landed in 1992 showed a continued decline in the proportion of 
people in the optimum ages for entering the labour market, that is from 
25 to 44. The proportion fell again to 41% from 44% in 1991 : in 1988 
the proportion was 50%. in 1989 48%, and in 1990 49%. The propor- 



tion of children (0-14) showed a small decline in 1992. at 13.8% as 
opposed to 14.4% in 1991. These are sharp declines from the 22' - in 
1988. 20% in 1989, and 22% in 1990. 

The proportion of young people (15-24) has remained stable: in 
1992 it grew slightly, at 14%. as against 13% in 1991, 12% in 1990. 
14% in 1989 and 12% in 1988. The number of middle-aged people 
( 45-64 ) continued to rise: at 2 1 % the figure was an increase over the 
19% figure for 1991, which in turn was well above those of 13% for 
the 1988 intake, 14% for 1989, and 12% for 1990. The increase in the 
proportion of people over 65 continued: 10% of those landed in 1992 
were in this category, as opposed to 3% in 1988 and 1989. to 4% in 
1990, and to 10% in 1991. The retired category no longer exists, so that 
the only people now coming in under this category are those who 
applied before it was abolished. 



Year 


0-14 


15-24 


25-44 


45-64 


65+ 


Total 


1988 


5126 


2825 


11686 


2911 


733 


23281 


1989 


4132 


2769 


9532 


2723 


705 


19861 


1990 


6478 


3432 


14303 


3565 


1171 


28949 


1991 


3225 


2891 


9789 


4242 


2182 


22329 


1992 


5378 


5525 


15880 


8171 


3842 


38841 



Language abilities 

Over half of Hong Kong immigrants who landed in 1988 and 1989 
spoke English; in 1990 the figure dipped slightly, to 49%. and in 1991 
continued to drop, to 48%. It declined again in 1992 to 45%. The decline 
in French speakers (unilingual or bilingual) has been checked. The 1992 
figure, at 0.38%, is an improvement on the 0.27% figure for 1991. 
though it is still below earlier figures: 0.63% in 1988 and 0.51% in 1989. 



Lang. 



English 



French 



Bilingual 



Mother 
tongue 



1988 13076 56% 

1989 10233 52% 

1990 14297 49% 

1991 10675 48% 



1992 



17561 45% 



56 0.24% 
26 0.13% 
8 0.03% 
16 0.07% 
35 0.09% 



410.39% 10058 43% 

75 0.38% 9527 48% 

98 0.34% 14543 50% 

46 0.20% 1159152% 



115 0.29% 



21115 54'/, 



Levels of official language knowledge vary considerably from 
class to class, with the lowest level associated with two of the three 
business classes. 



Official 
language 



Mother 
tongue only 



Independent 
Assisted relatives 
Retired 

Self-employed 
Family 
Investors 
Entrepreneurs 
Refugees 



2411 66% 

2413 60% 

2188 59% 

371 53% 

6331 45% 

1524 34% 

2461 30% 

12 29% 



1268 34% 

1603 40% 

1499 41% 

322 47% 

7891 55% 

2899 66% 

5604 70% 

29 71% 



8 UPDATE 



Educational levels 

The educational qualifications of immigrants from Hong Kong have 
been declining steadily over the past five years. In 1988 59% of immi- 
grants had secondary school graduation or less, in 1989 64%. in 1990 
66%, and in 1991 69%. In 1992 the comparable figure was 73% . Since 
this decline has occurred in parallel with a decline in the number of 
children (see above), these figures cannot be explained by pointing to 
children who are not old enough to have received much in the way of 
education, but must indicate declines in the educational level of adults. 
At the highest levels of education, a steady decline in proportion 
(though not in absolute numbers) is also apparent. The number of uni- 
versal graduates was 3597 (15%) in 1988, 2340 (12%) in 1989, 3358 
(12%'ifn 1990, 2492 (11%) in 1991. and 3697 (10%) in 1992. 



1988 



1989 



1990 



1991 



1992 



None 


2660 


2031 


3423 


2430 


3778 




(11%) 


(10%) 


(12%) 


(11%) 


(10%) 


Secondary or less 


11063 


10672 


15723 


12902 


24355 




(48%) 


(54%) 


(54%) 


(58%) 


(63%) 


Trade certificate 


3282 


2527 


3311 


1809 


2612 




(14%) 


(13%) 


(11%) 


(8%) 


(7%) 


Non-universitv 


1974 


1458 


1897 


1351 


2162 




(9%) 


(7%) 


(6%) 


(6%) 


(6%) 


Univ. non-degree 


703 


822 


986 


1049 


1792 




(4%) 


(4%) 


(3%) 


(5%) 


(5%) 


B.A. 


2665 


1740 


2540 


1943 


2901 




(12%) 


(9%) 


(9%) 


(9%) 


(8%) 


Some post-graduate 192 


123 


168 


75 


154 




(0.8%) 


(0.6%) 


(0.6%) 


(0.3%) 


(0.4%) 


M.A. 


702 


445 


610 


431 


567 




(3%) 


(2%) 


(2%) 


(2%) 


(1.5%) 


Ph.D. 


38 


32 


40 


43 


75 




(0.16%) 


(0.16%) 


(0.14%) 


(0.19%) 


(0.19%) 


Not stated 


2 


1 


224 


296 


445 


Total 


23281 


19861 


28922 


22392 


38841 



When the figures are broken down by immigration class, it becomes 
apparent that there is a considerable range in educational levels. While 
16% of retired people are university graduates, only 3% of 
entrepreneurs are. 



Education bv 


Secondary 


University 


Total 


Immigration Class 


or less 


graduates 




Retired 


2094 (57%) 


601 (16%) 


3687 


Independent 


2202 (60%) 


636 (T\ 1 


3683 


Assisted rel. 


2748 (68%) 


476 (12%) 


4018 


Family 


10233 (72%) 


1372 (10%) 


14223 


Self-employed 


520 (75%) 


46 (7%) 


695 


Investors 


3482 (79%) 


321 (7%) 


4425 


Refugees 


33 (80%) 


2 (5%) 


41 


Entrepreneurs 


6841 (85%) 


248 (3%) 


8069 



Occupation 

In 1990, about half of all immigrants from Hong Kong were des- 
tined for the work force. In 1991 that figure went down to 46% and in 
1992 to 45%. Of those entering Canada in 1992. 55% were classified 
as non-workers, that is they were not expecting to look for work in 



Canada. Of those who were going into the workforce. 59% were not 
classified tin a specific job. as opposed to 55'i in 1991 and 39' i in 
1990. 



Occupatioon 


1988 


1989 


1990 


1991 


1992 


Entrepreneur 


1087 


1276 


1030 


907 


2033 


Investors 






533 


582 


1030 


Managerial 


2876 


1696 


2189 


705 


1014 


Sci., engineering 


1170 


493 


613 


358 


479 


Soc. Science 


283 


131 


213 


65 


87 


Religion 


19 


22 


19 


24 


35 


Teaching 


148 


95 


95 


52 


43 


Medicine & health 335 


215 


294 


178 


247 


Arts 


275 


242 


269 


132 


130 


Sports & recreation 4 


-) 


4 


2 


3 


Clerical 


2604 


1872 


1280 


520 


667 


Sales 


912 


632 


895 


352 


361 


Service 


325 


344 


379 


329 


409 


Farming 


8 


4 


7 


4 


4 


Fishing, hunting 


7 














Forestry 


1 














Minin° 








1 





1 


Processing 


20 


21 


29 


5 


41 


Machining 


27 


23 


55 


25 


58 


Fabricating 


361 


250 


493 


190 


213 


Construction 


49 


58 


166 


63 


48 


Transport 


31 


18 


19 


13 


15 


Material 












handline 


23 


11 


3 


4 


3 


Other crafts 


53 


55 


170 


69 


56 


New workers 


1013 


1994 








Not classified 






5742 


5636 


10309 


Not stated 






32 


1 


24 


Total workers 






14540 


10230 


17331 


Non-workers 






14409 


12099 


21510 


Other 


11650 


10407 








Total 


23281 


19861 


28949 


22329 


38841 



The rate of anticipated work force participation varied considerably 
according to immigrant class. With the exception of the retired and 
investor classes, non-workers are likely to be the direct dependents of 
the principal immigrant: 

Workers and non-workers 



Worker 



Non-worker 



Total 



Independent 


2142 58', 


1541 42% 


3683 


Assisted rel. 


2135 5391 


1883 47'i 


4018 


Family 


6907 49% 


7316 51% 


14223 


Refugees 


20 49% 


21 51% 


41 


Self-employed 


308 44% 


387 56% 


695 


Entrepreneur 


3163 39% 


4906 61% 


8069 


Investor 


1621 


2804 63% 


4425 


Retired 


1035 28% 


2652 72% 


3687 


Total 


17331 


21510 


38841 



We should like to thank Employment and Immigration Canada, for 
making these statistics available to us. 



UPDATE 9 



A spring flood of articles about "the Hong 
Kong question" in China's newspapers dried 
to a trickle by early June for a number of rea- 
sons. Once talks between the British and 
Chinese governments resumed in Beijing on 
April 22, generally the People 's Daily and the 
China Daily toned down their scathing attacks 
on Hong Kong Governor. Chris Patten, and 
instead simply reported the date each round of 
talks began. In early June, the China Daily 
approvingly quoted Elsie Tu. deputy president 
of Hong Kong's Legislative Council (Legco), 
as calling for "a time of silence" and "an end 
to megaphone diplomacy" during the Sino- 
British talks. 



Hong Kong in the Chinese Press 

by Christina Mungan 
Beijing 

As if following Tu's advice, the Chinese 
papers gave no information at all about any 
progress made during the talks, probably partly 
because little progress seemed to be made. A 
prominent front-page article, noting the start of 
round six [China Daily, 17June 1993. p. 1]. 
quoted major Hong Kong newspapers as 
expecting "an early agreement" but noticeably 
failed to quote any Chinese source in support of 
that hope. The silence extended to Sino-Briush 
talks on the Hong Kong airport financing plan. 
Talks were scheduled to resume June 4. but by 
the middle of the month no further information 
had been published. 



Even actions that could have been expected 
to raise tensions failed to dominate the news in 
China. Patten's publication of draft plans for 
the 1 994-95 legislative election drew a pro- 
forma blast from Chinese officials, but gar- 
nered nothing like the flurry of attacks the mere 
suggestion that he might publish had brought 
down two months earlier. When Legco later 
endorsed the boundary and election commis- 
sion bill in late May. a Chinese Foreign 
Ministry spokesman professed himself "sur- 
prised" but otherwise made little comment pub- 
licly. When the National People's Congress 
closed in March, it set up a committee "to start 
preparations for 1997." its vague mandate lead- 
Press, cont'd page 1 1 



An Anglo-Chinese Confusion 



The present dispute between China and 
Britain is not the first occasion that Britain and 
China have had deep and bitter divisions over 
policy towards Hong Kong. In the late 1850s. 
after a fairly calm period of adjustment follow- 
ing the end of the Opium War in 1 842. a seri- 
ous conflict erupted, which eventually escalat- 
ed into war. The war came to be know n as the 
Arrow War because it started with a dispute 
over a lorca (a small boat) named the Arrow, a 
Chinese owned and operated vessel trading 
between Hong Kong and Canton, with a cer- 
tificate of registration in Hong Kong. When 
the boat was boarded by Chinese maritime 
authorities, the British leapt to its defense, even 
though its certificate of registration had 
expired, because there was a feeling that the 
local authorities needed to be 'taught a lesson.' 

The protagonists were the British consul in 
Canton. Harry Parkes. then twenty-nine years 
old but with fourteen years experience in 
China; the radical governor of Hong Kong, Sir 
John Bow ring 1 ; and the viceroy of Guangdong 
and Guangxi, Ye Mingzhen (Yeh Ming-chen). 
The British demands for 'satisfaction' from the 
Chinese authorities precipitated a crisis. As the 
affair escalated, the tiny British community in 
Hong Kong was spooked by the poisoned 
bread affair of January 1857. in which much of 
the community suffered ill effects from bread 
laced (not accidentally) with arsenic. 

When the news of the crisis reached 
London, there was a furious debate in 
Parliament, which ended w ith the fall of 



Palmerston's government, defeated by a coali- 
tion which claimed that Bowling had caused 
great and deliberate offense to the Chinese. In 
the election of 1 857 Palmerston's government 
was re-elected but took its initial defeat seri- 
ously enough to send out to China a special 
envoy. Lord Elgin, to supersede Bowring. 
Elgin was the son of Elgin of the Elgin 
Marbles, the man who acquired for the British 
Museum one of its most spectacular foreign 
"acquisitions." Elgin was only in his mid-lOs. 
but had already served as governor-general of 
Canada. His time in Canada is remembered 
less for any particular achievements than for 
the street, county, and hotel named after him. 

Lord Elgin's mandate was to settle out- 
standing issues w ith the Chinese, which he did 
w ith apparent success in 1 858 with the agree- 
ment for a new treaty, the Treaty of Tientsin. 
Two years later, however. Elgin was back in 
China, with a large joint British/French expe- 
ditionary force. The attempt in 1 859 by the 
first British ambassador. Elgin's brother. 
Frederick Bruce, to bludgeon Peking into 
allowing him to take up residence in Peking, 
had ended with the armed repulsion of Bruce 
and his party. The 1860 expeditionary force 
was mounted to impress the Chinese authori- 
ties with the seriousness the two countries 
attached to having representation in Peking. 
The British and French troops were staged 
near Hong Kong, on the peninsula of 
Kowloon. rented from the local Chinese 
authorities for the sum of £ 1 60 per annum. - 



In the summer of 1 860. the expeditionary force 
reached the outskirts of Peking, forcing the 
emperor to flee into the interior. The glittering 
summer palace, the Yuan Ming Yuan, was 
looted and then, on Elgin's specific instruc- 
tions, bumed as a punishment to the emperor. 
A great area of palaces and temples was 
reduced to complete ruins, an act of vandalism 
which put Elgin in the same class as his father. 

The Treaty of Tientsin was ratified soon 
afterwards, w ith an additional clause which 
ceded the Kowloon Peninsula to Britain. Elgin 
returned to England in 1860 still carrying a per- 
sonal letter from Queen Victoria to the emperor; 
he had had no chance to deliver it. This letter 
joined a letter written by the Queen in 1 857. 
also undelivered, in Elgin's personal papers. 

The best account of the war is by Douglas 
Hurd. The Arrow War, subtitled with some 
understatement, "an Anglo-Chinese Confusion 
1856-60." was published shortly after Mr. Hurd 
left the Foreign Office in 1965 to work in the 
Conservative Central Office, a move which led 
eventually to his becoming a member of parlia- 
ment. As Foreign Secretary in the present round 
of discussions with China, Mr. Hurd may have 
pause to remember his earlier writings. 

1 BowTing was a close follower of Jeremy Bentham and a great 
believer in reform. "He firmly shared (he Benthamite belief that 
the problems of any society could be solved if the clutter of tra- 
dition and prejudice were cleared away and its institutions 
reformed on logical and utilitarian lines " (Douglas Hurd. The 
Arrow War, (London: Collins. 1967). p.22] Bowring was also an 
accomplished linguist: he claimed to know fifteen languages, 
including Chinese 

2 Ibid..p.207. 



10 UPDATE 



Press, cont'd from page 10 

mg some Hong Kongers to call it a potential 
"shadow government" However, the now 
group has maintained a very low profile in the 

now s during this spring and summer. 

Indeed, relations looked positively cordial 
as seen in the press by early June. Readers were 
told that work on the Beijing-Kowloon railway 
line was being speeded up. that the Shenzhen 
stock exchange looked forward to expanding in 
a business boom after 1997. that now more and 
more Hong Kongers were learning Mandarin 
instead of English, and that Chinese audiences 
had enthusiastically cheered a number of Hong 
Kong rock stars on recent tours, while Hong 
Kong residents welcomed new PRC films. 

There were some jitters over Patten's visit to 
the United States in May. and his plea to 
President Clinton to renew China's Most 
Favoured Nation (MFNi status was virtually 
ignored in the Mainland papers. Conversely, 
the Macau government was pointedly hailed as 
a model of cooperation with China over the 
1999 handover. 

Still, the PRC government remained unusu- 
ally upbeat over Hong Kong. President Jiang 
Zemin was quoted on May 1 8 as saying that 
the current Sino-British talks "could produce 
positive results so long as both sides abide by 
the Joint Declaration, the Hong Kong Basic 
Law : and also agreements and understandings 



reached earliei between the two sides'' A 
Foreign Ministry spokesman reiterated the 

hopeful message three da) s later and empha- 
sized China's sincerity without, for once, 
attacking Britain's supposed lack of sincerity. 

Even as Sino-British hostilities lessened, the 
number of articles on Hong Kong in the 
People's Daily and China Daily also fell, parti) 
because Chinese officials have been distracted 
by a number of Other pressing foreign relations 
problems. Stories about Hong Kong were 
replaced by articles on China's various bids to 
join GATT, win the year 2000 Olympics, and 
retain MFN status with the US, while the gov- 
ernment struggled to put forward its own inter- 
pretation on troubles in Tibet, China's position 
at the U.N. World Conference on Human 
Rights, and Premier Li Peng's mysteriously 
long disappearance from public \ iew. 

However, if political relations with Hong 
Kong have been glossed over lately, economic 
relations w ith Hong Kong businesses have 
received more emphasis. Hong Kong is 
China's major trading partner and vice versa, 
but April saw few of the usual articles about 
Hong Kong investments in China - as if 
Beijing's warnings that the political dispute 
could damage business relations had found 
concrete illustration in the volume of news 
coverage. 



B) June though, the Chinese press was once 
again heralding such coups as an agreement 
with three Hong Kong linns to build a power 
plant in Guangdong, plans for China's biggest 
anils manufacturer to build luxury cars w ith 
Hong Kong cooperatively, a Hong Kong com- 
pany \ gift o\ I ss 1 25,000 to a PR( ' charity, 
and the purchase by two major Chinese state 
corporations of a 30$ stake in Hong Kong's 
First Pacific Bank. 

In a still more sinking change, the Chinese 
government positively began to woo Hong 
Kong business people. PRC President Jiang 
Zemin made an important speech urging accel- 
eration of China's economic reforms and 
growth, and the speech was published in a 
Chinese-owned Hong Kong magazine 
(Bauhinia) before publication in the Mainland. 
A front page article in the China Daily on May 
29 urged Hong Kongers to "swarm to inland 
regions." including areas as remote and lacking 
in infrastructure as Xinjiang and Ningxia 
provinces. Such a move would certainly solve 
another problem causing Beijing headaches, 
namely the increasing inequities between 
coastal and inland areas. In short. Hong Kong- 
Mainland relations by mid-summer had 
resumed a businesslike tone. 



Good and Bad Triads: Notes from the Hong Kong Press 



The problem of temiinology is a recur- 
rent one between Chinese and English and 
between Hong Kong and China. In April this 
year, the meaning of the word 'triad' came 
under scrutiny. There was an agitated reprise 
of a terminological confusion which first 
cropped up in April 1992. The PRC Minister 
of Public Security. Tao Siju. announced, as 
he had the year before, that Beijing would be 
happy to work with "triads,' so long as they 
were patriotic and had renounced crime. 
This statement, coupled with stories that 
leaders of the Sun Yee On Triad had visited 
Beijing in March and met with Mr. Tao just 
before he made his remarks about patriotic 
triads, led to a great deal of nervousness in 
Hong Kong [South China Morning Post. 1 7 
April 1993~p. 1]. 



However, according to an official 
spokesman for the Ministry of Public 
Security quoted in the South China Morning 
Post. Mr. Tao's remarks were being misinter- 
preted. By 'triads' he meant "societies spon- 
taneously formed by people from the same 
birthplace or in the same trade, in a bid to 
protect their interest in an organised way" 
[SCMP. 24 April 1993, p. 4]. This is seldom 
the interpretation of 'triads' in Hong Kong, 
where they are assumed to be organizations 
principally devoted to crime. 

The Beijing explanation was especially 
difficult to accept this year because it was an 
almost identical repeat of last year's state- 
ments. In April 1992. Mr. Tao announced 
that the key factor in assessing people was 
their patriotism. 



Tao said that 'triad members are 
not all cut out of the same cloth. 
Some are patriotic to China and Hong 
Kong.' He added that while triad soci- 
eties are not to be allowed to develop 
in China. Hongkong gang members 
were allowed to visit and even to 
establish businesses on the mainland 
[Far Eastern Economic Review. 16 
April 1992. p. 16]. 

Speculation as to the reason for the April 
triad 'trial balloons' ranged from a regular 
warning by the PRC to Hong Kong not to 
oppose Peking's wishes (given that the PRC 
government was friendly with the triads i. to 
a veiled threat to Hong Kong authorities not 
to crack down on the triads. 



UPDATE 1 1 



Hong Kong Pop Singers' Charity Concerts in China 



by Bernard Luk 
York University, Toronto 



Hong Kong has a sizeable and lively pop 
music industry, with dozens of well known 
artists working in a unique blend of Chinese, 
Western. Japanese and other traditions. They 
produce hundreds of new albums every year. 
Their work, mostly in Cantonese, is avidly 
followed in Hong Kong and in the Cantonese- 
speaking overseas Chinese communities of 
North America. 

Some of the stars have been touring 
Canada for both commercial and charitable 
performances. For instance. Anita Mui. one 
of the most popular singers, will be perform- 
ing in Toronto this October to raise funds for 
the University of Toronto and other non-profit 
organizations. Another well known singer is 
Canadian Sally Yeh. who grew up in 
Vancouver and has many fans in Hong Kong 
and Canada. 

Hong Kong pop stars also enjoy wide fal- 
lowings in Taiwan and Mainland China. 
Indeed, many Hong Kong singers are youth 
idols in Hong Kong as well as household 
names in the Peopled Republic, where thou- 
sands of young people in Beijing, Shanghai, 
and other cities learn to speak Cantonese, not 
only for its economic value in the Open Door 
reforms but also for its musical value. 

During the late 1980s, some Hong Kong 
singers began to make popular and lucrative 
concert tours in China. Their performances 
were frowned upon by the authorities there as 
examples of Westernized decadence, but were 
tolerated as concomitant with the Open Door 
policy. This year, however, a formula has 
been found to bring together Hong Kong pop 
stars, their fans in China, and the interests of 
the state. That formula is a series of fund rais- 
ing concerts to help the poor and needy in the 
People's Republic. 

Charity concerts have a long and venera- 
ble tradition in Hong Kong. Throughout the 
1950s and '60s. all-night concerts, given by 
Cantonese opera artists and broadcast over 
the radio a few times every winter in aid of 
disaster victims, philanthropic hospitals, 
orphanages, or scholarship funds, were high- 
lights on the cultural calendar that helped to 
forge a sense of community among two mil- 
lion dispirited refugees. In recent decades, the 
tradition has continued with numerous fund 
raising shows on television every year. Hong 
Kong probably enjoys and supports more 



such performances each year - usually suc- 
cessful ones - on its electronic media than 
any other society. 

The tradition took a political turn in May 
1989 when the artists and pro-democracy 
activists organized a pop music marathon in 
the Happy Valley Race Course in support of 
the students and citizens of Beijing, then 
under siege by martial law. Attended by half a 
million people and broadcast live over televi- 
sion, the concert raised HK$13 million 
(CDNS2 million) in one day. Among other 
things, the concert provided funds for the 
tents on Tiananmen Square, which two weeks 
later were crushed by the tanks. After the 
massacre, most Hong Kong singers decided 
not to perform in China again. However, 
authorized or pirated copies of their albums 
continued to do well in the Mainland market, 
and their popularity with PRC fans continued 
to grow. 

During the summer of 1991, when parts of 
central China were devastated by floods, the 
Chinese government appealed for relief from 
overseas. Pro-democracy activists in Hong 
Kong were the first to respond and organized 
a large fund raising concert featuring many 
stars. The money they realized was accepted 
by the PRC authorities although the organiz- 
ers were not permitted to visit the disaster 
areas. 

Meanwhile, there were reports that a num- 
ber of actors and singers had been coerced by 
violence or threats of violence to make com- 
mercial films against their will. The perpetra- 
tors were reputed to be newly emerging 
underworld organizations from the Mainland. 
The popular culture community was greatly 
shocked by several shooting incidents during 
1992, and some famous performers were put 
under police protection. 

Last winter, when the PRC authorities 
were focusing their wrath on Governor Patten 
and pro-democracy groups in Hong Kong, 
several popular Hong Kong singers were 
invited to Beijing to participate in a New Year 
concert which was broadcast over China 
Central Television. A number of Hong Kong 
singers also took advantage of the more 
relaxed economic climate on the Mainland to 
do lucrative concert tours there. However, 
many famous performers still would not visit 
China for commercial gain. 



In February 1993, it was announced that 
Hong Kong Television Broadcast Company 
and China Central Television would co-spon- 
sor a Campaign for the Poor in China. The 
Campaign would be organized with the assis- 
tance of the PRC Ministry of Civil Affairs. It 
would open in April with a concert featuring 
most of Hong Kong's top stars in the Great 
Hall of the People in Beijing, followed by a 
series of concerts in various cities in China 
lasting till October. The Great Hall is normal- 
ly reserved for formal state functions; this 
was probably the first time that it provided 
the venue for rock and roll. 

Some of the stars who had not performed 
in China since 1989 took part in the grand 
opening of the Campaign on April 18, 
although not all of them attended the official 
receptions or met with government leaders. 
The grand opening was broadcast live in 
Hong Kong and China. Attendance at the 
Great Hall was limited to 8.000 invited guests 
only, and no tickets were offered for public 
sale. Plans to hold a Hong Kong-style run- 
athon with Hong Kong stars and PRC citizens 
on the streets of Beijing were vetoed by the 
security-conscious city authorities. 

Around the time of the opening concert, 
there was a great deal of media coverage on 
(he miserable conditions of the poor in China. 
Many of those conditions were well known in 
Hong Kong; but this marked the first time 
that they were openly acknowledged in con- 
nection with a media event which was offi- 
cially backed by the PRC government. 
During the concert itself, there was a great 
deal of emphasis on sympathy for the poor in 
China, on "blood is thicker than water." and 
on the duty of Chinese people in Hong Kong, 
Taiwan, and overseas to help. The concert 
may well mark a new relationship between 
the PRC authorities and popular culture in 
Hong Kong. 

The videotape of the open concert has 
been released commercially and broadcast on 
Chinese-speaking television stations in 
Canada. 



12 UPDATE 



Is Canada Losing Hong Kong Investment? 



by Susan Haulers and Don Pittis 
Oxford, U.K. 



Ever since it became clear that China 
would take control of Hong Kong, nervous 
money has been flowing out of the British 
colony and into Canada. Now. some analysts 
argue the trend is reversing. Pushed by 
Canada's low economic growth rates and 
high unemployment and pulled by the boom- 
ing economy in South China, some Hong 
Kong money is returning home. 

According to Andrew Ma. spokesperson 
for Hong Kong*s Trade Development 
Council. "Ten years ago. there was a steady 
flow of money out of Hong Kong [to 
Canada]." That has changed: "The money is 
now seeing its way back to Hong Kong, and a 
lot of investments we see in China, in fact, 
flow from Hong Kong, from Canada." 

Given the relatively high rates of return in 
South China and other factors. Ma's analysis 
makes some sense. However, the trend does 
not worry Joe Clark. During a March 1993 
visit to Hong Kong, the then Constitutional 
Affairs Minister said he was not concerned 
about the evidence that investment, including 
Chinese Canadian capital, is moving into 
Hong Kong and South China from Canada. 

"There are so many Canadian entre- 
preneurs who have direct contacts with Hong 
Kong and with Southern China." Clark rea- 
soned. "It is a constructive factor in two-way 
investment and we've got no concerns about 
two-way investment. We welcome it." 

The same methods of government statistics 
gathering and complex investment patterns 
that obscure the size and nature of Hong Kong 
capital in Canada [see Hong Kong Capital 
Flows Into Canada, p. Iff.] also prevent us 
from knowing how much Hong Kong money 
is leaving the country. Depite these problems, 
some analysts conclude that the recession and 
other changes in the Canada-Hong Kong 
investment env ironment have hurt some ty pes 
of investment more than others. 

For instance, we do know that direct 
investment in Canada by Hong Kong resi- 
dents was still increasing at the end of 1991, 
the last date for which figures are available. 
From CDNS 1 .3 billion at the end of 1990, it 
climbed to S2.3 billion a year later, an 
increase of 767c during some of the worst 
months of Canada's economic downturn. 

According to Henry Yau of Investment 
Canada, this was because 'Asian investors 



lake a long term point of view" and are 
unlikely to pull their money out because of a 
temporary economic decline. "Unless they 
are verj strapped for cash, they will stay in." 
he said. 

Moreover, government officials say direct 
investments by Hong Kong residents are like- 
ly to continue to increase in the long term due 
to such factors as the North American Free 
Trade Agreement. Canada-Hong Kong family 
and business linkages, and East Asia's 
expanding pool of capital. Nonetheless. Yau 
predicted that growth in direct investment 
could slow in the short term because the 
majority of the big money anxious to get out 
before 1 997 has already diversified out of 
Hong Kong. While existing direct investors 
are not pulling their stock of investment out 
of Canada in significant numbers, thev could 
well be investing their profits in South China 
and other areas where returns are better. "I 
don't believe there is any flowing back of 
money, but the amount of money flow ing in 
w ill be relatively flat." Yau concluded. 

Indirect portfolio investment is a different 
matter. Although exact figures do not exist, 
government and private-sector analysts say 
there have been declines in 'speculative' pur- 
chases of such things as stocks and bonds, as 
money from both Hong Kong residents and 
Hong Kong immigrants in Canada grav itates 
to the relative windfalls in East Asia. No one 
knows how big the outflow is. in part because 
Statistics Canada does not keep tabs on Hong 
Kong's share of foreign indirect holdings of 
portfolio investment. 

On the other side, barring another major 
political crisis in Hong Kong, investment 
related to immigration from the British terri- 
tory may already have peaked. Wayne Lorch. 
whose P.W. Lorch & Associates Ltd. man- 
ages immigrant investor syndicates, said the 
recession probably only heightened a trend 
already ev ident before the Canadian economy 
soured. Rich Hong Kong business immigrants 
tend to keep most of their investment capital 
in Asia, where their returns are largely tax 
free. Lorch indicated. 

"They may have substantial additional 
capital," he said. "But I don't think Canadians 
should hold their breath about them transfer- 
ring all their money, other than what is 
required under the [Immigrant Investor] 



Program, enough to buy a monster house in 
British Columbia and a hank account to keep 
themselves." 

Another route for the return of money to 
Hong Kong is with immigrants who have 
obtained passports and have returned to the 
territory to find higher paying jobs. The Hi mg 
Kong Institute of Personnel Management 
estimates the number of Hong Kong returnees 
from all countries at nearly 15%. However, 
the precise size of the flow back is difficult to 
calculate with any certainty because Hong 
Kong returnees may enter and leave the 
British territory using their Hong Kong travel 
documents, leaving their adopted countrv of 
origin unrecorded. Also. Canadians of Hong 
Kong origin now living in Hong Kong are not 
required to register their presence with 
Canadian authorities or to inform Canadian 
officials upon their departure from Canada. 

Yau from Investment Canada maintains 
that many of those returning are professionals 
whose dependents remain behind in the 
Canadian family home. There are no esti- 
mates of how much capital such itinerant 
workers might take with them. Furthermore, 
because many Chinese businesses in both 
Canada and Hong Kong are family -owned 
and. thus, not subject to the public disclosure 
rules that apply to publicly traded companies, 
it is more difficult to know how much capital 
they might be transferring out of Canada. 

On the inflow side, the average amount of 
money that business immigrants from all 
countries declared they were bringing into 
Canada at ports of entry reached a five-) ear 
low in 1992 of $87,257 for each principal 
applicant. The average was $120,000 for 
those from Hong Kong. However, govern- 
ment figures indicate a fluctuating pattern, 
rather than a steady drop in the funds 
declared by business immigrants as the reces- 
sion took hold. Moreover, government offi- 
cials said that the numbers probably underes- 
timate the actual capital brought into Canada 
by immigrants, although they stress that 
authorities neither check to ensure that immi- 
grants actually transfer the funds nor investi- 
gate whether such capital remains in Canada 
afterward. 



Investment, cont'd page 14 



UPDATE 13 



Investment, cont'd from page 13 

A general decline in immigration applica- 
tions from Hong Kong residents, particularly 
those applying in business categories, points 
to declining capital inflows from Hong Kong 
immigrants in the coming years. According to 
figures from the Canadian Commission in 
Hong Kong, in 1991 the number of immigra- 
tion visa applications for all categories fell by 
nearly half from the year before. During the 
same period, business immigration applica- 
tions plunged 69%, while those from skilled 
workers dropped 67%. The decline suggests 
some business immigration applicants will 
barely meet the acceptability criteria and that 
most of the best applicants have already left 
the territory. 

The fall is significant because, although 
relatively few in numbers, business immi- 
grants - especially those in the investor cate- 
gory - are the source of most of the immigra- 
tion-related investment capital brought into 
the country. According to economist Roslyn 
Kunin, in a report prepared for Employment 
and Immigration Canada, the 20,000 business 
immigrants who landed in Canada between 
1986 and 1990 poured an estimated $3 billion 
into the economy. 



The recession is partly to blame for the 
decline. However, other factors - increasing 
competition from other countries seeking rich 
immigrants, slow application processing 
times, and concerns about abuses under the 
immigrant Investor Program (IIP) - may have 
deterred applicants. Changes to the IIP regu- 
lations at the end of 1992. which increased 
the minimum amount of investment required 
to $250,000 from $150,000 and locked it in 
for five years instead of three, also decreased 
applications. "Anyone who really wanted to 
come to Canada tried to get in under the old 
regulations." John Martin of the Business 
Immigration Program declared. In addition, 
application rates are no longer skewed by the 
abnormally high number of immigration 
applications sparked by the Chinese govern- 
ment's suppression of the pro-democracy 
movement in 1989. 

As the pool of moneyed immigrants from 
Hong Kong dries up and more of the territo- 
ry's migrants are approved under non-busi- 
ness classes, officials are looking to other 
parts of the world for new sources of business 
irnmigrants. 



The 1 992 federal government Ministerial 
Task Force on the Immigrant Investor 
Program stated: "[IIP] Fund promoters and 
sales agents have concentrated their market- 
ing efforts in Hong Kong over the past several 
years, exploiting the uncertainties surround- 
ing the proposed changeover in governments 
in 1997.... although Canada's focus on Hong 
Kong has paid dividends, that market now 
shows signs of returning stability. However, 
other markets such as Taiwan, the Middle 
East, Latin and South America are showing 
signs of potential growth." 

Some analysts suggest the richest business 
immigrant applicants now come from 
Taiwan, not Hong Kong. Taiwan's share of 
Canadian business immigration is growing, 
jumping from 591. or 12.9% of principal 
applicants, in 1990 to 1,335. or 19.69f. in 
1992 - a level second only to Hong Kong. 

"It's safe to say that other parts of the 
world are going to play a bigger part [in the 
IIP]," Martin concluded. 

We thank Employment anil Immigration Canada 
and Investment Canada for making these statistics 
available to n\. 



Hong Kong and the Closure of Provincial Offices Abroad 



The closure this year of all Ontario's sev- 
enteen overseas offices was the most dramatic 
step in what has been a steady provincial 
retreat from independent overseas representa- 
tion. In the case of Hong Kong, it reduced to 
four the number of provinces with representa- 
tives operating in the territory - a far cry from 
the early 1990s when New Brunswick was 
the only province not to have a provincial 
agent there. 

For the most part, overseas provincial 
offices were intended to raise the profile of 
provinces on the international scene, ensuring 
that their interests, particularly commercial 
interests, were well represented. Ontario. 
Quebec, Alberta, and British Columbia tend- 
ed to have the most offices abroad, although a 
number of Maritime provinces have had rep- 
resentation in Europe and in the eastern 
United States. 

Most offices focused on the promotion of 
investment in their provinces and the facilita- 
tion of the business immigration program, 
along with some trade development and cul- 
tural affairs publicity as well. They were 
intended to operate in concert with the federal 



government, coordinating events and strate- 
gies with the local embassy, consulate, or 
other federal office. In this sense, they were 
important players in sharing the workload of 
overseas promotional work, particularly in 
their investment development focus. 
Moreover, Quebec, with its constitutional 
powers with respect to immigration, contin- 
ues to operate a substantial immigration pro- 
gram in concert with federal immigration 
officers. 

However, the presence of some of the 
offices inevitably led to confusion among 
several host countries, particularly those 
which did not have a federal system and 
which were unsure of the respective duties 
and powers of the federal and provincial 
offices. This was not a problem unique to 
Canada, as it was often the case with overseas 
offices operated by American states. The 
most common concern was that competition 
between provinces, however low key, for 
commercial or investment benefits led to a 
diluting of Canada's overall image abroad. 
Even with concerted efforts on the part of the 
provinces to present themselves as part of 



Canada, this competition made it more diffi- 
cult at times to present a cohesive Canadian 
presence. 

However valid these concerns might have 
been, the sheer cost of office space and the 
pressure to reduce apparent duplication of 
effort between federal and provincial govern- 
ments led to new federal -provincial overseas 
arrangements. Increasingly, provincial gov- 
ernment representatives began locating within 
federal embassies and consulates. They con- 
tinued to represent the interests of their 
provincial governments and. particularly, key 
industry sectors important to their provinces, 
such as oil and gas in Alberta. They also 
shared the consular and administrative 
responsibilities of all officers operating at 
Canadian posts abroad. 

The closure of many overseas provincial 
offices may mean increased pressure to 
expand the number of these shared arrange- 
ments with the federal government. Although 
with federal cost-recovery schemes, such 
arrangements also represent an expense to the 
provincial governments. At present. Quebec 
continues its immigration activities, important 



14 UPDATE 



to its domestic cultural and linguistic policy - 
but sometimes under similar space-sharing 
arrangements with the federal government 

Increasingly, tight provincial budgets and 
the concern to reduce waste and apparent 
duplication at all levels of government will 
continue this trend to reduce separate overseas 
representation and to share arrangements with 
the federal government. At the same time. 
Ottawa has also increased its commitment to 
involve provincial governments in the setting 



of federal trade development priorities, in an 
attempt to offset concerns that pro\ incial inter- 
ests w ill suffer with the closure of their over- 
seas offices. However, fiscal pressure has also 
meant the closure of embassies and consulates, 
so it will not alwav s be easv for the Canadian 
offices to assume the tasks of the provincial 
representatives. 

With record governmental debt and 
deficits, it will be a long time, if ever, before 
prov incial representation in Hong Kong again 



reaches the level of the 1980s. However, the 
growth ot overseas offices did send a message 
to the federal government of the importance 
attached to international activities In the 
provinces. Moreover, the fact that most oi 
Atlantic Canada at one time was represented 
in Hong Kong underscores the growing 
awareness of the importance ot this region to 
all of Canada. 



The pitfalls of setting up business in the 
People's Republic of China are legion. Many 
firms, including multi-nationals have found 
China a difficult place in which to do business, 
especially because of widely varying local con- 
ditions. One Canadian firm that has renewed its 
China ties and set up successful on-going oper- 
ations, in this case in the Shenzhen Special 
Economic Zone (SEZ). is Alcan. 

Alcan has extensive dealings both in 
Guangdong and Hong Kong through its 
Asian subsidiary. Nikkei Alcan Ltd. The cen- 
tre of its Asian operations is located in Hong 
Kong, and the firm is committed to the con- 
tinuation of its half-century trade in south- 
eastern China. Its office in Hong Kong has 
been in place for more than twenty \ ears w ith 
a full complement of staff that serves as the 
nerve-centre for Alcan's PRC operations and 
its China-centred decision making. 

Together with its Japanese subsidiary, 
Nippon Light Metal Ltd.. Alcan's Hong Kong 
office has directed various projects, first in 
the Hong Kong market, from w hich it gained 
valuable expertise, and now in China. Alcan's 
experience in Hong Kong and the Mainland 
is illustrative of a story w ith a positive ending 
- that with creative management, ev en what 
seems at first like insurmountable obstacles 
can be overcome. 

The story of Alcan in China began in 
1928, when Alcan established its first sales 
office and eventually set up an aluminium foil 
rolling operation along with Swiss and 
British companies. It owned 5 1 % of that 
operation which was seized by the Japanese 
during the war. After World War II. Alcan 
had no further production in China until 
1979. with the coming of the new open-door 
policy. Between those years, it simply was an 
exporter of aluminium ingots to China. 



The Multinational Entrepreneur in Shenzhen SEZ 

by Paul Levine 
City Polytechnic of Hong Kong 

Path to Success: Doing Business 
in China 

Alcan's strategy during the late 1970s and 
early 1980s was not to try to go directly into 
China with its own joint- venture operation as 
many companies did. which often led to 
unhappy results. Rather, it put up small 
investments in related businesses in the PRC. 
in order to gain experience that would 
enhance Alcan's ability to make the right 
decisions when it did finally choose to enter 
into larger scale production operations. 

Alcan's early moves had a double-sided 
benefit. First, they formed the basis for the 
company's Chinese partners to start a rela- 
tionship that would last, especially when 
larger-scale operations were planned. 
Second. Alcan gained exposure that gave it 
credibility in the eyes of its Chinese counter- 
parts, that it would keep its word and that it 
was not just in for a short-term "quick profit 
and quick exit." Starting in 1978. Alcan, 
along with a Japanese partner, built a turn- 
key aluminium ingot smelter that was hand- 
ed over to China in 1982. Next, in 1985. it 
built an aerosol can manufacturing facility 
whose production was aimed for the domes- 
tic Chinese market. 

According to Roger Hum. the chief execu- 
tive officer of Alcan Nikkei (China) Limited, 
the Hong Kong-based headquarters of Alcan 
China, the next step was to head toward 
Shenzhen, the burgeoning Special Economic 
Zone. "When we decided to go to the 
Shenzhen SEZ. we did it because it was on the 
front line, not a backwater." With its proximity 
to Hong Kong, container links, and access to 
the China market. Shenzhen was a logical 
entry -point for China-based operations. 

In 1986. Alcan set up a joint venture alu- 
minium extrusion (producing aluminium 



logs) plant in Nantou near She Kou. just out- 
side of Shenzhen. Its PRC partner was the 
China National Nonferrous Metals 
Corporation (CNNC) in Beijing, which con- 
trols the Chinese aluminium industry. The 
choice of CNNC turned out to be strategically 
advantageous because as the project proceed- 
ed, local Guangdong officials tried to insert 
themselves between Alcan and CNNC. Each 
time this happened. Alcan was able to use its 
influence in Beijing to overrule provincial 
authorities. An example, and one that was to 
play a key role in the success of the project. 
was the struggle over the recruitment of 
workers. 

Recruitment and Training of 
Young Workers 

As Roger Hum tells it. this was a crucial 
issue. In the late 1980s most foreign joint 
ventures with Chinese partners were limited 
in their recruitment to workers from state- 
owned firms, who were used to an 'iron rice- 
bowl' system with lifetime employment, 
regardless of efficiency. This resulted in a low 
average output and non-competitive rates of 
efficiency, w ith the consequence that many 
joint ventures quickly disappeared from the 
Chinese scene. 

In order to circumvent this situation. Alcan 
decided to recruit workers directly, without 
going through provincially controlled recruit- 
ment offices and by advertising for 'young' 
workers with no previous experience. They 
had the advantage of being trained by foreign 
managers. More importantly, they could be 
motivated to increase output through material 
incentives, such as output-related bonuses for 
increases above production targets and scarce 
consumer goods like nylons. 

Alcan. cont'd page 16 



UPDATE 15 



Alcan, cont'd from page 15 

At first, the process of obtaining young 
workers, who were usually thrust down on 
the last rung of the production ladder and 
paid the lowest wages by the seniority-cen- 
tred Chinese industrial system, was quite dif- 
ficult. However, once Alcan's joint venture 
partner intervened, direct recruitment and in- 
factory training began to pay off. The result 
was that young workers, who were consid- 
ered the 'low-castes' on the ladder, became 
the most sought-after workers for Alcan and 
other employers. 



The plant opened in 1 990 and hired to 
capacity, with over 300 workers. Within five 
months, it was operating in the black and, 
despite the 1989 downturn in the Chinese 
economy, it has been profitable since 1991. 

To summarize, its Chinese experience has 
taught Alcan the importance of the following: 
1 ) patient negotiations with a powerful local 
partner, who could intervene and overcome 
local road-blocks; 2) long-range planning with 
a firm commitment that would not change 
even when confronted by short-term economic 
goals and policy obstacles; 3) creative on-site 
management and recruitment policies to utilize 
advantageous conditions; and 4) good infras- 
tructure, such as provided in Shenzhen. 



Finally, as Roger Hum said. "There are 
always going to be policy changes in Beijing 
and this will affect business aims." The radi- 
cal shift since Alcan's first success can be 
seen in greater powers given to localities as 
the Chinese economy has rapidly decentral- 
ized, doing away with many of the advan- 
tages Alcan enjoyed through its contacts with 
a powerful Beijing partner. Today local 
authorities are likely to have final, overall 
decision making powers. However, Alcan's 
long-term planning and on-the-spot creative 
management should help it through many 
future ups and downs. 



Seminar on Canadian Trade in Southern China and Hong Kong 

by Sonny Lo 
Hong Kong University of Science and Technology 



On 20 April 1993, a conference exploring 
the opportunities for Canadian trade and 
investment in Southern China and the role of 
Hong Kong as intermediary was held in the 
Mandarin Club, Toronto. The seminar was 
sponsored by the Asia Pacific Foundation of 
Canada, the Canadian Chamber of Commerce 
in Hong Kong, the Hong Kong-Canada 
Business Association (Toronto section), the 
Asian Business Studies Program of the Joint 
Centre for Asia Pacific Studies, and the 
Pacific Basin Economic Council (Canadian 
Committee). 

Speakers at the conference included 
Stephen Lam, director of the Hong Kong 
Economic and Trade Office in Toronto; Peter 
Wong, president of Hong Kong Ferry 
(Holdings) Co. Ltd.; Ted Lipman, deputy 
director of the East Asia Trade Development 
Division. External Affairs and International 
Trade Canada; James Keenan, director of spe- 
cial projects, Asia Pacific Foundation; John 
Lam, vice president of Asian Banking, Hong- 
kong Bank of Canada; Tang Fuquan, PRC 
Consul-General in Toronto; and Frank Chau, 
president of Canadian Goldyear Realty Inc. 

Many of the speakers stressed the impor- 
tance of Hong Kong's role in the develop- 
ment of and investment in Southern China 
and the significance of Canada-Hong Kong 
business ties. Stephen Lam discussed recent 
growth trends and the economic interdepen- 
dence between Hong Kong and South China. 



He pointed out that there were numerous 
opportunities for Canadian trade and invest- 
ment in Southern China, where a cooperative 
network had already been formed by combin- 
ing Hong Kong's capital and managerial 
knowledge with China's low production costs 
and huge consumer market. 

Peter Wong emphasized that South China 
offered numerous investment and manufac- 
turing opportunities for Canadian business 
people. He maintained that China had made 
many improvements in its infrastructure, 
electricity supply, and legal and accountancy 
systems. As a member of Guangdong's 
People's Consultative Conference since 1989, 
Wong also suggested that small and medium- 
sized foreign companies should establish 
their communication networks in Hong Kong 
as a first step to expanding their business into 
China. 

Ted Lipman also maintained that Hong 
Kong represents a stepping stone for 
Canadian trade with the PRC. He advised 
Canadian companies to form "partnerships" 
with Hong Kong counterparts and Mainland 
enterprises in order to reduce the risks of 
investing in China. Southern China is "a 
springboard to China's hinterland," and 
"China is a potential market for every 
Canadian export." 

John Lam made some financial recom- 
mendations to Canadian businessmen regard- 
ing their entry into the South China market 



through Hong Kong. He stressed that doing 
business in China needed time and patience 
and that it would be wise for Canadian buyers 
to use middlemen to solve payment problems. 

The Chinese Consul-General. Tang 
Fuquan. emphasized that China provided 
"tremendous opportunities" for Canadian 
trade and investment. He objected to Mr. 
Lipman's remarks that Southern China prac- 
tised "capitalism with a Chinese face" and 
insisted, rather, that China followed "social- 
ism with Chinese characteristics." 

Insights on the selection and management 
of Hong Kong distributors for China's market 
were presented by James Keenan of APF. He 
advised that Canadian companies should use 
their sales representatives to explore the mar- 
ket in the PRC instead of relying on the 
reports conducted by consultancy firms. 
Strategies of distribution are crucial for 
Canadian companies to trade with China. He 
suggested that training should be regarded as 
"an on-going process that must be shared 
with distributors." 

Finally. Frank Chau gave an overview of 
the legal procedures for doing business in 
Southern China. He pointed out that drawing 
up a business contract required the approval 
of various local authorities and departments 
and also stressed that patience was crucial for 
foreign business people investing in the PRC. 



16 UPDATE 



Metro -Toronto Week in Hong Kong 



The Municipality of Metropolitan 

Toronto is organizing a Metro-Toronto 
Week in Hong Kong for the end of 
November 1993. The program is expected to 
feature an investment seminar, business del- 
egations, a gala dinner, cultural activities, 
and events involving all three levels of edu- 
cation. A side-trip to south China is also 
planned for the business delegation. 

Metro-Toronto Week will be the third 
Canada-Hong Kong celebration in'as many 
years. In June 1991 the Canadian govern- 
ment held a Canada Festival in Hong Kong. 
which was presided over by Prime Minister 
Brian Mulronev [see Canada and Hong 
Kong Update, no. 5. Fall 1 99 1 . pp. 1-4]. In 
the autumn of 1992, the Hong Kong govern- 
ment reciprocated with a Hong Kong 



Festival held in major cities across Canada, 
from Montreal to Vancouver [see Update . 
no. 8, Fall 1992, pp.5-7]. Senior Executive 
Councillor Baroness Lvdia Dunn and 
Governor Christopher Patten officiated at 
the opening and closing ceremonies, respec- 
tively. Business, cultural, and academic 
activities and people-to-people exchanges 
were prominent in both years. The festivals 
were considered vers successful in fostering 
goodwill and mutual understanding between 
the two societies, as well as in establishing 
more Hibstantive economic, social, and cul- 
tural ties across the Pacific. 

Metro-Toronto Week is intended to build 
upon and further develop the fruitful con- 
tacts that were made in the two earlier festi- 
vals. It will be smaller in scale, engaging 



Canadian participants onlv from the greater 
Toronto area, and will not involve the more 
senior levels of government. The organizers. 
based in the Economic Development 
Division of Metro Hall, hope to promote 
partnership between Hong Kong and 
Toronto in many fields of endeavour. 

The Canada and Hong Kong Project 
played an active role in the two previous fes- 
tivals, holding academic workshops on 
legal, political, social, and educational 
issues on developments in Hong Kong and 
Canada-Hong Kong relations." It intends to 
continue with this involvement during 
Metro-Toronto Week. 

*[A number of the papers presented at 
these workshops have been published or are 
being prepared for publication. ] 



Maintain or Reform: Dispute Within Vancouver CCC 



by Hugh X. Tan 
Vancouver 



On Sunday 25 April 1993. Vancouver's 
Chinatown witnessed an historical event when 
some 4.300 people went to the Chinese 
Cultural Centre (CCC) to vote for a 31 -seat 
Board of Directors, from a total of 73 candi- 
dates. As this election would determine 
whether the "Committee to Maintain the 
Community's Participation in the CCC" 
(Maintain Committee) or the "CCC Renewal 
Committee" (Renewal or Reform Committee) 
would control the Board from 1993-1995, it 
attracted much attention from the Chinese 
community and was taken very seriously b\ 
all parties involved. Along the streets leading 
to the Centre, candidates from the rival com- 
mittees, as well as some independent contes- 
tants, set up display tables, making a last 
minute effort to attract more votes. Policemen 
and private security guards, placed at the 
entrance to the voting room, checked ID's and 
membership cards of the voters. Observation 
rooms were set up above the voting area to 
monitor the scene, and the accounting firm 
Price Waterhouse was hired to count votes. 

Founding and Activities of CCC 

To understand the emergence of compet- 
ing factions in the CCC and the importance of 
this election, we need to look at the history of 



is ™ 






;; - 
















the Centre. The CCC of Vancouver was 
founded in 1973. after a proposal by the 
Wong's Benevolent Association, a clan-chari- 
ty organization in Vancouver's Chinatown. 
Representatives from 2 1 community organi- 
zations then formed the Centre, with the goal 
to promote Chinese culture in the Canadian 
setting and to develop friendship with other 
communities. After twenty years of opera- 
tion, the Centre has grown considerably and 
become verv influential in community affairs. 



It now has a new branch office in Richmond. 
B.C.. where many Asian, especially Hong 
Kong and Taiwan, immigrants have settled. 
The Centre is well known for its cultural 
activities, which include organization of the 
annual Spring Festival celebrations, sponsor- 
ship of art exhibitions, and the invitation of 
well known artists and performers from the 
PRC and Hong Kong to Canada. The CCC is 
often visited by government delegations from 
the PRC. Its regular training courses include 
Chinese calligraphy, painting. Tai Chi. danc- 
ing, and Chinese languages. Its Board of 
Directors, all of whom are volunteers, is re- 
elected every two years. Funding is partly 
from government sources and partly from pri- 
vate donations. 

Background on Dispute 

The dispute between the "Maintain" and 
the "Renewal" committees can be traced back 
four years ago, to the aftermath of the 4 June 
1989 Tiananman massacre. At that time, a 
new lv -formed organization, the Vancouver 
Society in Support of Democratic Movement 
(VSSDM), proposed a replica of the Goddess 
of Democracy be built in the Dr. Sun Yat-Sen 
Garden in Chinatown, but the proposal was 
rejected. In April 1990. the Society applied to 
CCC. cont'd page 18 

UPDATE 17 



CCC. cont'd from page 17 

Vancouver's Parks Board to place a 
Tiananman memorial plaque in the city-run 
Sun Yat-Sen Park, adjacent to the Garden. 

This idea provoked strong opposition from 
the Chinese Benevolent Association (CBA), an 
umbrella organization consisting of some fifty 
community groups. Heated debates occurred 
between the two sides, which finally led to the 
City's refusal of the application [see Update, 
no. 1, Spring 1990, p. 9], Three years later, 
some VSSDM supporters became members of 
the CCC "Renewal Committee," while some 
Chinese community leaders were the back- 
bone of the "Maintainers group" within the 
CCC. 

The second encounter between the two 
groups took place before the 1992 annual gen- 
eral meeting of the Chinese Cultural Centre. 
The CCC Coastitution Committee, headed 
by William (Bill) Yee (also Chair of the CBA), 
proposed to amend four areas in the existing 
constitution: 1 ) to change the name of the 
Centre to the Chinese Cultural Centre of 
Greater Vancouver: 2) to set aside 11 of the 3 1 
seats in the Board of Directors for community 
organizations; 3) to pre-screen applicants for 
CCC membership by the Board of Directors; 
and 4) to require candidates running for the 
Board to be CCC members six months prior to 
the election (past requirement was one month). 

Except for the name change, these amend- 
ments aroused strong reaction from the com- 
munity. A public statement, signed by a num- 
ber of former directors, present directors, and 
long-time supporters of the CCC, denounced 
the amendments as detrimental to the Chinese 
Cultural Centre. Such changes would make "it 
more restrictive to become a member or to 
serve as a Board member" and thus enable "a 
small group of insiders to maintain control of 
the Centre without going through a truly 
democratic election process." On April 26. 
over 500 members attended the annual meet- 
ing to vote for the amendments. About a dozen 
people spoke, most of whom were against the 
proposals, and organizers maintained order 
with difficulty. After heated debates, a motion 
was passed to defeat the amendments. 

Criticism of CCC 

With the rejection of these proposals, the 
dispute in the community remained dormant 
for several months. However, it resurfaced a 
few months later in the factions, the 
"Reformers" and the "Maintainers," contesting 
the 1993 Board elections. In January of this 
year. Mr. Xu Xing, a former Hong Kong jour- 
nalist and an outspoken critic of the above- 



mentioned amendments, published articles in 
the Sing Too Daily [ 1 1 January and 30 January 
1993], a widely read Chinese language news- 
paper in Vancouver. 

The first article, entitled "The CCC Must 
be Reformed." criticized the Centre for pro- 
moting Chinese culture in a selective and 
restricted way. Specifically, he maintained that 
1 ) the Centre promoted "Embassy culture." as 
only PRC newspapers and magazines were in 
the reading room, while Hong Kong and 
Taiwan publications were excluded; and 2) the 
Centre mostly publicized popular Chinese cul- 
ture, such as boat racing and lion dancing, and 
largely ignored classical or "high level" 
Chinese culture, such as education in religion, 
philosophy, classical poetry, calligraphy and 
traditional painting. 

Mr. Xu appealed to the Centre to abandon 
its "cultural restrictionism" and open its 
doors to all segments of Chinese culture: 
including Hong Kong, Taiwan, the PRC. and 
overseas Chinese communities, especially 
those in North America. He also worked out a 
general framework for reforming the CCC. Mr. 
Xu's arguments, not surprisingly, became a 
very controversial subject in the community. 
During the months that followed, comments, 
criticism and counter-criticism on this subject 
filled the Chinese language press in 
Vancouver. Discussions were also aired by 
Chinese language radio programmes. 

Contesting 1993 Board Elections 
In mid-January, the Renewal or Reform. 

(using the same Chinese character Ge Xin) 
Committee put forward a list of 25 candidates 
to run for the next Board of Directors of the 
CCC. Most of these candidates were middle- 
aged professionals: lawyers, accountants, 
physicians, university professors. About one 
third of them were relatively new immigrants 
who had lived in Canada for less than six 
years. Ten were born in Hong Kong, while 
three were Canadian-born. Two were running 
for re-election to the Board. The goal of the 
Reform Committee was to change the Centre 
into a more "active, accessible, and account- 
able" organization. 

Facing the challenges of the reformers, 
those who felt more comfortable with the sta- 
tus quo formed the Maintain Committee to 
support their candidates for the election. This 
committee included representatives from 12 
major community organizations and 19 indi- 
vidual candidates who supported community 
organizations. Eight of them were present 
directors of the CCC. including Chairman 



Fred Mah and Vice Chairman Bill Yee. These 
people covered a wider range of occupations: 
lawyers, managers, high school teacher, jour- 
nalist, businesspersons. and civil servants. 
They were generally considered to be more 
established in the Chinatown area, as well as 
in Canada. Most of the community organiza- 
tions they represented or supported had a long 
history in Canada. The slogan for this group 
was to keep "community participation in the 
CCC, for peace, harmony and prosperity in 
Chinatown." 

Three major conflicting views toward the 
CCC and its present Board of Directors were 
outlined in a report based on separate inter- 
views with Patrick Chen, spokesman for the 
Renewal Committee, and Vice-Chairman Bill 
Yee. First, Chen criticized the Board's stagna- 
tion and lack of creativity. He saw the same 
programs running over and over again without 
new ideas coming from the directors. He also 
claimed meetings began hours late due to a 
lack of a quorum. Although Bill Yee admitted 
there was room for improvement, the vice- 
chairman countered with the fact that the 
Board did have new ideas, but the introduction 
of new programs depended on the resources 
of the Centre. 

Secondly, the Board of Directors was criti- 
cized for devoting too much energy to main- 
taining power and not to developing pro- 
grams, and Chen cited the example of the 
defeated constitutional amendments. Yee 
maintained that, on the contrary, the Board 
usually had to beg people to serve because it 
was a "thankless job" - "no pay, no glory, but 
only work." He welcomed the Reformers to 
work for the Centre, but felt they should not 
nave split the community or been so critical of 
the people who had served in the past. 

Thirdly, the two factions accused each 
other of having hidden political agendas and 
fighting for control over the Centre. Chen 
maintained that the Board of the CCC was 
dominated by earlier immigrants and some 
local-born Chinese who were resentful of the 
newer immigrants. Chen also claimed that the 
Renewal Committee was more representative 
of the whole community and was committed 
to a non-political agenda for the Centre, nei- 
ther for nor against PRC policies. Yee coun- 
tered by saying that many Renewal members 
were involved in the pro-democracy move- 
ment which was unpopular in the larger 
Chinese community. He claimed these mem- 
bers intended to use the CCC's resources to 
reach people [Chinatown News, Vancouver, 
Vol.40, No. 11, p. 17]. 



18 UPDATE 



In addition to the above criticisms, some 
Renewal members also accused the CCC of 
misusing government funds and. because of its 
mis-management, causing a sharp decrease in 
pn\ ate donations. The CCC Board of 
Directors stated these allegations were ground- 
less and demanded an apology. 

While these two groups were engaged in a 
war of words, 17 independent candidates 
also signed up to run for the next Board, bring- 
ing the total number contesting to a record 
high of 73. Many of these independents were 
activists in community affairs who wanted to 
work for the Centre but did not want to take 
sides in the dispute. However, five of them 
joined the Reformers group just before the 
election. 

As candidates competed to recruit support- 
ers for the election, the number of CCC 
members soared in February and March. By 
March 26. the last day to become eligible 
members to vote in the election, the CCC had 
about 7,000 people registered - four to five 
times the regular number. The importance of 
the election and its significance within the 



local Chinese community was noted bj the 
mainstream press in Vancouver. The 
Vancouver Sun published three articles on the 
election, describing the event as a battle 
between "yuppies" and the "old guards" in the 
ethnic community. 

Election Results 

On April 25 a record number of over 4.000 
people voted in the Board elections which last- 
ed from 8am to 8pm. A sample survey, taken 
during the voting, showed that the Maintain 
group kept a steady lead by a ratio of six to 
four. When the results were released a week 
later, the Maintain group had won all 31 
Board seats, a major victory over the 
Reformers. First in the poll was Victor Lee, a 
mechanical engineer at UBC, who garnered 
the most votes - 2,522. Pius Wong, a restau- 
rant businessman and a real estate developer, 
captured the 3 1st seat with 2,362 votes. The 
most popular Renewal candidate. Dr. Thomas 
In-sing Leung, director of the Chinese 
Studies Program at Regent College, collected 
only 1 ,620 votes, while the top independent 



candidate obtained less than 1 ,000 votes. 
Implication of Elections 

Now that the battle over the CCC diiectoi 

ship has been settled for the next two years, 
both sides have begun to to mend their 
fences. One of the new Board members has 
suggested that people from the Renewal 
group form an advisory board so that their 
concerns can be taken into account. Some 
Renewal members have also expressed their 
willingness to work with the new Board. 
While all election campaigns produce 
winners and losers, what is most important in 
these CCC elections, in the writer's opinion, 
is that the whole community has demonstrat- 
ed the exercise of individual rights in a demo- 
cratic election system. Moreover, this election 
aroused people's enthusiasm in participating 
in politics - which is often lacking in over- 
seas Chinese communities, especially in the 
new immigrant groups. Thus, the larger sig- 
nificance of this election in participatory 
democracy is far-reaching. 



Tommy Tao: NDP Candidate for Vancouver Quadra 



by Hugh X. Tan 
Vancouver 



Tommy Tao. a forty-five year old 
Chinatown lawyer, was nominated as New 
Democratic Party (NDP) candidate for 
Vancouver Quadra in June 1992. thus becom- 
ing the first Chinese-Canadian nominee in the 
Greater Vancouver area for the upcoming fed- 
eral election. His riding, located quite central- 
ly in the city of Vancouver, stretches from the 
University of British Columbia in the west to 
Nanaimo Street in the east. The 1986 census 
figures show that 102.000 people lived in this 
multi-ethnic area, including the following 
groups: Sino-Canadian ( 19%). Indo-Canadian 
(3.5%). German (3.4%), Jewish (2.1%). and 
Italian i2'- I. 

In recent years many new immigrants 
from Hong Kong. Taiwan, and the PRC have 
settled here. It is estimated at present that 
about 25% of the residents are ethnic 
Chinese, while 60% are Anglo-Canadians. 
The remainder include South Asians. 
Vietnamese, Filipinos, and Greeks. This area 
is not only diversified in ethnic background 
but also in socio-economic status. Near UBC 
and in the adjacent area, middle class profes- 
sionals and technical personnel form the 
largest group, while in Shaughnessy, one of 




the most prestigious residential areas in 
Vancouver, upper-middle and upper class 
families predominate. Further to the east, the 
area between Main to Nanaimo Street is 
largely a working class neighbourhood. 

The present MP of the riding is Liberal 
John Turner, who is retiring this year. Edward 
(Ted) McWhinney, a retired political science 
professor from Simon Fraser University, has 
been nominated as the Liberal candidate. 



Tommy Tao came from Hong Kong in 
1968 after the riots there. His initial experience 
in Canada was not without anxiety and frustra- 
tion. He first went to study at the Universitj of 
Toronto, but later changed to an electrical tech- 
nology school from which he graduated m 
1972. He landed his first job in Vancouver as 
an electrical technician. He later attended night 
school and also studied at UBC. 

It was his experience at UBC. he feels, 
where he began to become more a part of the 
Canadian way of life and accepted Canadian 
social values. He made friends w ith 
Canadians and got involved in student activi- 
ties. After graduating from UBC with degrees 
in psychology and law in 1982. he worked in 
a downtown law firm for several years and 
eventually started his own firm in Chinatown 
in 1987. Mr. Tao is married to Marian Leung, 
who is a payroll consultant. She has been an 
active supporter of his federal campaign as 
well as in community affairs. 

Mr. Tao has been a social activist ever 
since the mid-1970s when he was still attend- 
ing UBC. He has served on several boards 
and committees in Chinese community orga- 
nizations, as well as in other public groups. 

Tommy Tao. cont'd page 2: 
UPDATE 1 9 



IMEWS IIM BRIEF I NEWS IN BRI 



June 4th Commemorated 

The massacres in Beijing and elsewhere in China on 4 June 1989 
were commemorated in Hong Kong and other Chinese communities 
around the world. 

The candle-light vigil at Victoria Park in Hong Kong, held during a 
rainstorm, was attended by a crowd estimated at 40.000 by the organiz- 
ers, at 1 2,000 by the police, and at 25,000 by the press. The size of the 
attendance was rather smaller than the 100.000-plus in 1990. the 
80.000 in 1991, and the 50.000 in 1992. Nevertheless, given the pas- 
sage of time since the tragic events, the poor weather conditions, and 
the vehement attacks by the PRC authorities and local ultra-conserva- 
tives on pro-democracy activities and sentiments in Hong Kong, it was 
considered by observers to be still a very strong show of support. 

There were commemorative marches and candle-light vigils in 
Toronto and Vancouver, each attended by hundreds of ethnic Chinese 
and other Canadians. Ministers of the Ontario government participated 
in the vigil held at the bronze sculpture memorial which was installed 
last June 4th on the campus of the University of Toronto. 

Memoirs of Xu Jiatun 

Since May 4. the World Journal (Shih-chieh Jih-pao), which is wide- 
ly circulated in Canada, has been publishing instalments of the memoirs 
of Xu Jiatun, former head of the Xinhua Branch in Hong Kong. 1983- 
1989, and de facto representative of Peking in Hong Kong. Xu left 
China for California in 1990. shortly after the end of his term in Hong 
Kong. He has subsequently been expelled from the Communist Party of 
China and denounced as a traitor by the Peking authorities. Xu claims in 
the first instalment of his memoir that he still regards himself as a 
socialist and a communist, though now outside the Party. 

Asian Business Certificate Program 

During May and June, the Asian Business Studies Program of the 
Joint Centre for Asia Pacific Studies offered a highly successful Asian 
Business Certificate Course. The eight, full-day sessions included 
overviews of the Asia Pacific region and international marketing and a 
focus on the business environment in specific countries - Japan. 
Taiwan. Korea, the People's Republic of China. Hong Kong. Thailand 
and Vietnam. The last two sessions focused on the area of cross-cultur- 
al effectiveness and negotiations simulation. 

Speakers included specialists from the academic and business envi- 
ronment as well as government. For example, at the session on the 
"Markets of Greater China: Hong Kong and the PRC," Mr. Peter Chen 
(formerly a professor of Management at Chinese University of Hong 
Kong and now a private business consultant in Canada) gave a back- 
ground briefing on Hong Kong. Both he and Mr. Meng Deyi, the 
Commercial Consul of the Consulate General of the PRC, spoke on the 
business environment of China. Marketing in Hong Kong was 
addressed by Mr. Henry Ng, director of the Hong Kong Trade 
Development Council in Toronto. The session concluded with a fasci- 
nating discussion by Mr. Tom Yu of UNIFIN International, a Canadian 
company which exports heat transfer systems for heavy industry, on the 
challenges faced by his firm in the process of negotiating and "doing 
business" in China. 



Newspaper for "Greater China" 

A new daily newspaper with a unique concept was launched in 
Hong Kong towards the end of April. The Huanan Jingji Xinwen, or 
South China Economic Journal, is a Hong Kong-based Chinese lan- 
guage newspaper which focuses on economic and financial news of the 
increasingly integrating region of Hong Kong. Macau, Taiwan, and the 
PRC provinces of Guangdong. Guangxi. Hainan, and Fujian. It promis- 
es to be a major vehicle for information and analyses on this vast area 
with a combined population of 170 million and one of the highest eco- 
nomic growth rates in the world today. 

The South China Economic Journal is the brainchild of its chief edi- 
tor. Chan Kai-cheung. Mr. Chan, a media wizard with degrees from 
Hong Kong and Oxford in engineering, information science, and sociol- 
ogy, has wide experience as a journalist in North America and television 
executive in Hong Kong. The paper is published by the Jademan Group, 
the largest shareholder of which is the Sing Tao Group which also pub- 
lishes the Sing Tao daily newspapers in Toronto and Vancouver. 

Toronto Chinese TV Licence Before 
CRTC 

The Canadian Radio and Television Commission (CRTC) is consid- 
ering renewal of the licence of Chinavision, the Chinese language cable 
television station in Toronto. The station, first founded in the mid- 
1980s, has been plagued by financial difficulties under its original own- 
ers during the last few years. The owners also came under criticism for 
business dealings with the PRC authorities that resulted in news report- 
ing allegedly biased in favour of those authorities during the 
Tiananmen movement of 1989. 

A consortium, which includes a Netherlands-based subsidiary of 
Hong Kong Televison Broadcast Company Ltd. (HK-TVB), is seeking 
CRTC permission to buy the station. The participation of HK-TVB is 
welcomed by many subscribers as likely to improve the standards of 
programing. However, very serious concern also has been voiced about 
the possibility of interference after 1997 by the PRC authorities, via the 
Hong Kong company, in news and current affairs programs of a 
Canadian televison station. 

Golden Palm Award at Cannes Film 
Festival 

The Palme d'or for the best film in 1993 was won by the Chinese 
film. Farewell to My Concubine. It was shared with a New Zealand 
film. Farewell was made in Beijing by a Mainland director, Chen 
Kaige. a Taiwanese producer. Hsu Feng, and a cast from Hong Kong 
and the Mainland, including Hong Kong singer-turned actor Leslie 
Cheung. It was financed from Hong Kong. 

This was the first such major collaboration in film-making by the 
three Chinese communities and the first time that the award has been 
won by a Chinese-language film. It enjoyed a successful run in Hong 
Kong but has been banned in both the PRC and Taiwan, mainly for 
political reasons. 



20 UPDATE 



en 



TIT 



nnm 



ESSE 



l=ll=lJ 



Vancouver Policeman Studies in 
Hong Kong 

John Cameron, a Vancouver police constable stationed in Chinatow n. 
went to Hong Kong in April to learn more Cantonese and policing skills 
at the Royal Hong Kong Police cadet school. He is the first North 
American policeman to be sent to study in Hong Kong. His air fare was 
provided by the Vancouver Chinatown Business Association. 



New President of CCCHK 

Eliza C.H. Chan was appointed the new president of the Canadian 
Chamber of Commerce in Hong Kong on May 29. at the Chamber's 
annual general meeting. 

Ms. Chan, a partner at the Hong Kong-based law firm Jewkes & 
Partners, is a barrister and solicitor qualified to practise law in Hong 
Kong. England. Wales, and Canada (British Columbia). She has a 
diploma in People's Republic of China law and acts as a consultant on 
PRC law. She is also a consultant to Osier Renault Ladner. Canada's 
largest law firm. 

Canadian Students Winners of CCCHK 
Trade Competition 

Ngai Au and Michael Chan. MBA students at McGill University in 
Montreal, are winners of the 1992-93 Canada-Hong Kong Trade 
Competition sponsored by the Canadian Chamber of Commerce in 
Hong Kong. Their business plan investigates the possibility of setting 
up a state-of -the-art public information and commercial advertising 
system in Hong Kong's Mass Transit Railway. Their submission won 
in a field of 29 entries from 8 1 graduate-level students across Canada. 

Their plan involves the use of Visual Communication Network, a 
Canadian product which features flicker-free animation sequences 
along with a mixture of text and graphics. With VCN installed on the 
MTR people would be able to see the latest news, financial informa- 
tion, and weather reports. VCN would also assist hearing and visually 
impaired people in station identification. Even emergency message 
announcements could be made. 

This competition, now in its 7th year, entails the submission of a 
business plan which sets up a Canadian product in Hong Kong. 
Judging is based on understanding of the business environment, inno- 
vation, viability, depth of research, clarity, and presentation. 

Thorssen Wins CCCHK's Voyageur 
Award 

Bob Thorssen. managing director of SMED Asia Ltd.. is the win- 
ner of the Canadian Chamber's first Voyageur Award [see Update, 
no. 9. p.15]. It was presented at the Chamber '.s Spring Ball on May 29 
at the Island Shanari-La Hotel. 



This new award recognizes successful Canadian entrepreneurs in 
Hong Kong. The name comes from some of Canada's earliest 
entrepreneurs, the voyageurs, who travelled through the country's 
lakes and rivers b\ canoe to set up trading posts. 

"Thorssen truly embodies the spirit behind the award," saj S 
Harold Mandel, chairman of the Forum Committee which initiated 
the Voyageur Award. "He took a calculated risk and has now estab- 
lished a very successful business. He has created a niche for himself 
in a very competitive market h\ selling unique Canadian products to 
the Hong Kong market." 

Thorssen owns 100% of SMED-Asia Ltd.. which buys from sever- 
al Canadian office furniture manufacturers and imports to Hong 
Kong. Macau and China. He sells to the end user through his local 
partner Logic Office Supplies Ltd. His plans for 1993 and 1994 
include joint venture factories in China and opening showrooms in 
Beijing. Shanghai and Xiamen. A native of Calgary. Alberta, 
Thorssen started SMED Asia in 1989. 

More than 25 nominations for the award were received, and the 
criteria forjudging was detailed. Nominee questions included 
specifics, such as the percentage of revenue derived from sales of 
Canadian products and/or services, their particular niche in the mar- 
ket, and their contribution toward the exchange between Canada and 
Hong Kong business. 

Canadian Immigration Responsibilities 
Shifted to Department of Public Security 

On 25 June. Canada's new Prime Minister. Kim Campbell, 
announced cabinet changes and reorganization of some federal 
departments, including Employment and Immigration Canada (EIC). 
Immigration responsibilities will be divided between two federal 
departments. Public Security and Human Resources and Labour. 
Most immigration functions, including policy, selection, and enforce- 
ment, will now fall under the jurisdiction of a new super ministry, the 
Department of Public Security, headed by Solicitor-General Doug 
Lew is. Included in this transfer are also divisions in charge of immi- 
gration operations and regional offices, international sen ice. and the 
Business Immigration Program. Responsibility for settlement and 
levels of immigration will remain in the new Department of Human 
Resources and Labour, under Minister Bernard Valcourt. 

Reaction by refugee and immigration groups has been strongly 
negative. The changes were denounced as an implication by the Tories 
that "refugees and immigrants are all a danger to this country." An 
editorial in the Toronto Star [14 July 1993. p.A18] reiterated that the 
new Prime Minister "thinks immigrants are in the same league as con- 
victed criminals and potential troublemakers from whom the nation 
needs protection." It asked the question: "Why must we have an 
Orwellian agenc> treating immigration as a police or security matter?" 



UPDATE 21 



Tommy TaO, cont'd from page 19 

His positions include former director of the 
Chinese Cultural Centre and the Chinese 
Benevolent Society, and past Chair of the 
Special Advisory Committee on Race 
Relations to the City of Vancouver. Still a 
member of the latter, he also serves as a 
trustee of the Vancouver Art Gallery and a 
member of the Provincial Committee for 
Police - Visible Minority Relations. 

A dedicated member of the New 
Democratic Party, Tommy Tao worked from 
1981 to 1987 as a part-time Constituency 
Assistant to Margaret Mitchell, MP (NDP), 
Vancouver East. At present, he is a NDP 
Provincial Council Delegate for Vancouver 
Kensington. Given his intensive party com- 
mitments, it was not surprising that he accept- 
ed the invitation to run for the federal nomi- 
nation, although not without some hesitation 
at first. 

In June last year, he defeated another party 
candidate, Liz Carr-Harris, and became the 
NDP nominee for Vancouver Quadra. Due to 
his long-term involvement with the party, he 
was able to persuade NDP members, regard- 
less of their racial background, to support 
him, rather than depending on recruitment of 
new supporters from outside. His logic is that 
if he cannot successfully convince party 
members to support him. how can he con- 
vince people in his riding to vote for him in 
the next federal election? 



Tommy Tao sees himself first and fore- 
most as a Canadian candidate, rather than a 
"Chinese-Canadian" one. In his nomination 
acceptance speech, he identified his major 
concerns: protection of the environment, eco- 
nomic development, national unity, and 
equality for women, visible minorities, homo- 
sexuals, and the disabled. He also addressed 
the unemployment issue and reform of the 
Canadian tax system. 

A strong opponent of the North American 
Free Trade Agreement (NAFTA), Mr. Tao 
thinks it would only harm Canada's 
sovereignty and weaken the country's ability 
to compete in the world economy. He thinks 
NAFTA is nothing but a "me-too" response to 
U.S. trade policy, which cannot solve our 
economic problems. His solution to the econ- 
omy is to break our habitual dependence on 
the U.S. market and develop closer trading 
relations with Asia Pacific and European 
countries. One way to develop these relations 
is to use the connections of new immigrants 
[Sing Tao Daily, 26 May 1993, p. 1 ]. He also 
appeals to Canadians to stop their reckless 
exploitation and destruction of the earth's 
resources. 

Tommy's focus on national issues does 
not mean he neglects the concerns of 
Chinese-Canadians. He has worked hard to 
clarify some misunderstandings toward the 
NDP in the ethnic-Chinese community. To 



this end. he wrote an article, "The Terrible 
NDP," for Sing Tao Daily, which outlined the 
differences between the Communist Party in 
East Asian counties and the Canadian NDP. 

Regarding the head-tax issue, Mr. Tao sup- 
ports individual monetary compensation, 
although he feels the amount is negotiable. He 
has spoken and written on this topic on many 
occasions and helped MP Margaret Mitchell to 
prepare materials for presentation in Parliament. 
Tommy is also a supporter of the recent 
Renewal Committee of the Chinese Cultural 
Centre [see "Maintain or Reform" p. 17ff.). 

In his federal election campaign. Tommy 
Tao is running on a motto that stresses "hon- 
esty": "to make an honest effort, to give an 
honest answer, and to be honest to the voice 
of the people as well as to the voice of my 
conscience." Realizing the importance of 
keeping in close touch with his constituency. 
Tommy has made a concerted effort to per- 
sonally visit many residents in his riding - 
over 1,500 households by now. Accompanied 
by one of his assistants, he has enjoyed many 
in-depth conversations with residents and has 
valued their opinions, especially criticism 
toward NDP policies. 



Seminar on 






HONG KONG 






and CHINA 






Held at UBC 






A two day seminar on Hong Kong and 


April 23, AM 


April 24, AM 


China was held at the University of 


"Elections in Hong Kong and the 


"The Hong Kong Dimension of 


British Columbia from April 23-24. It 


Future Relationship with the People's 


Canada's Foreign Policy" 


was jointly sponsored by the Canada 
and Hong Kong Project, the Faculty of 
Law at UBC, and the Institute of Inter- 


Republic of China" 

Speaker: Bernard Luk, York University 

April 23, PM 


Speaker: Kim Nossal, McMaster 

University 

About forty people from government, 
the academic world, and the private 


national Relations, UBC. The program- 


"Hong Kong's Pro-China Groups" 


sector attended the seminar. 


me consisted of the following topics: 


Speaker: Willy Wo-lap Lam, South 
China Morning Post 


A second seminar on Hong Kong 
and China will be held at UBC in 
February 1994. 



22 UPDATE 



"City" 

by Louise S. W. Ho 

Chinese University of Hong Kong 

No fingers claw at the bronze gauze 
Of a Hong Kong December dusk, 
Only a maze of criss-crossing feet 
That enmeshes the city 
In a merciless grid. 

Between many lanes 

Of traffic, the street-sleeper 

Carves out his island home. 

Or under the thundering fly-over. 

Another makes his peace of mind. 

Under the staircase, 

By the public lavatory, 

A man entirely unto himself 

Lifts his hand 

And opens his palm. 

His digits 

Do not rend the air, 

They merely touch 

As pain does, effortlessly. 




On 3 June, Louise S.W. Ho gave a poetry reading and talk at York 
University in Toronto. Her presentation was jointly sponsored by the 
Canada and Hong Kong Project and the English Department at York. 



Ms. Ho, a lecturer in the English Department at the Chinese University of 
Hong Kong, teaches Shakespeare and 17th and 18th century poetry. She is 
one of few - perhaps, the only - Hong Kong Chinese poet writing in 
English. Many of her poems and other recent writings are concerned with 
the cultural identity of language as well as Hong Kong peoples' perception 
of their identity as "Chinese." Speaking about the predicament of a 
Chinese poet writing in English instead of in Cantonese or Mandarin, she 
felt that living across languages and cultures enhanced creativity: 
"Inspiration is found at the interface between the two." 



UPDATE 23 



Basic Reference Works on Hong Kong 



There is a large and rapidly growing body 
of serious literature in English on the eco- 
nomics, politics, and history of Hong Kong. 
Many of these books are of a high quality. 
They also tend to be rather specialized in 
approach. 

For the general reader whose work is relat- 
ed in one way or another to the evolving situa- 
tion in Hong Kong, reliable and up-to-date ref- 
erence tools, which provide quick references 
and overviews before one approaches the more 
specialized books, are clearly a necessity. The 
following are some reference works which 
should be of value to those with a more than 
casual interest in Hong Kong. 

Historical Dictionary of Hong Kong 
and Macau. 

Elfred Vaughan Roberts, Sum Ngai Ling, 
and Peter Bradshaw, eds. 

Asian Historical Dictionaries 

series, no. 10. 

Metuchen, NJ and London: The Scarecrow 

Press, 1992. 

xlvii, 357 pages 

ISBN: 0-8108-2574-0 

In spite of its title, the emphasis of this 
book is on the post- World War II period, and 
especially the past two decades. Four-fifths of 
the book is devoted to Hong Kong; the remain- 
der covers Macau. 

A lengthy introduction gives a comprehen- 
sive, if not altogether satisfactory, synopsis of 
Hong Kong history. A carefully selected bibli- 
ography guides the reader through books and 
articles on the history, politics and administra- 
tion, economy, society, crime, religion, law, 
biographies, company histories, newspapers 
and periodicals, bibliographies, and statistics. 
There are also a brief chronology and a few 
statistical tables. 

The most useful part is the dictionary itself, 
which forms the bulk of the book. It is made 
up of more than 200 pages of entries, in alpha- 
betical order, on names and terms in the histo- 
ry and recent developments of Hong Kong. 
The entries are strongest on political and con- 
stitutional matters, adequate on the economy, 
and rather thin on society, culture, and person- 
alities. Nevertheless, they provide clear, read- 
able, and usually accurate explanations of 
many aspects of Hong Kong. The period of 
coverage extends from the Neolithic to the 
Joint Declaration and the Basic Law. The 
inclusion of many intricate and intriguing 
terms related to those two documents of the 
1997 transition should make this book of par- 
ticular interest to the readers of the Canada 
and Hong Kong Update. 



Hong Kong (World Bibliographical 

Series, vol. 115). 

Ian Scott, comp. 

Oxford: Clio Press, 1990. 

xxiii, 248 pages. 

ISBN: 1-85109-089-4 

This bibliography, compiled by the 
Canadian head of the Political Science 
Department of Hong Kong University, is the 
most up-to-date and comprehensive, one-vol- 
ume guide to the literature in English on Hong 
Kong. By its nature it cannot be as rich or as 
full in coverage as the more specialized bibli- 
ographies, nor does it contain references to 
works in Chinese or other languages. 
Nevertheless, with more than eight hundred 
annotated entries in thirty different areas, it 
should prove to be very helpful for studying 
Hong Kong. 

The books, articles, and periodicals cited 
are divided into the following areas: the territo- 
ry and its people, geography, flora and fauna, 
archaeology and prehistory, history, popula- 
tion, urban society and social problems, reli- 
gion, law, administration, politics, the econo- 
my, transport, social services, health and medi- 
cal services, housing, the environment, educa- 
tion, science and technology, language, litera- 
ture, the arts, architecture, libraries, museums 
and archives, sports and recreation, mass 
media, directories, bibliographies, and statis- 
tics. The annotations after each entry are often 
quite detailed and informative. There are also 
indices of authors, titles, and subjects to facili- 
tate the use of the bibliography. 

Hong Kong 1993: a Review of 1992. 
Hong Kong: Government Printer, 1993. 
479 pages (English ed.) 
ISBN: 962-02-0125-6 

This is the latest annual volume of the Hong 
Kong Government yearbooks which, in the pre- 
sent series, go back twenty years. Rich in facts 
and figures and beautifully illustrated, it is the 
best one volume guide to the organization, pro- 
grams, and activities of the government and of 
the government's view of major events during 
the past year. Over the decades, the series of 
yearbooks (and their predecessors, the Annual 
Reports) are useful for providing a great deal of 
information and insights on long term trends of 
administrative, economic, social, and cultural 
development in Hong Kong. 

The yearbook is organized in chapters 
which correspond more or less to the adminis- 
trative departments of the government. There 
are numerous appendices covering the 
Executive and Legislative Councils, Hong 
Kong's overseas representation, and statistics 
on many subjects. 



The Other Hong Kong Report. 

(Four volume set) 

Hong Kong: The Chinese University Press, 

1989-92. 

Includes: 

The Other Hong Kong Report. [1989] 

T.L. Tsim & B.H.K. Luk, eds. 

xxxv, 395 pages. 

ISBN: 962-201-430-5 

The Other Hong Kong Report 1990. 
Richard Y.C. Wong & Joseph Y.S. Cheng, 
eds.; xxviii, 579 pages. 
ISBN: 962-201-494-1 

The Other Hong Kong Report 1991. 
Sung Yun-wing & Lee Ming-kwan, eds. 
xxvii, 541 pages. 
ISBN: 962-201-538-7 

The Other Hong Kong Report 1992. 
Joseph Y.S. Cheng & Paul C.K. Kwong, 
eds.; 462 pages. 
ISBN: 962-201-563-8 

The first of these reports was published in 
the aftermath of the Tiananmen massacre in 
Beijing and the consequent crisis of confi- 
dence in Hong Kong. It was intended to pro- 
vide an alternative, critical, and more readable 
survey of Hong Kong society and government 
policies during the late 1980s. It followed the 
basic organization of the government year- 
book. Each chapter was written by an expert, 
usually from the local universities, on the 
social sector or government department con- 
cerned. 

The series which developed out of that first 
effort has established itself as a standard refer- 
ence. Valued for its annually updated facts and 
figures, as well as for its usually thoughtful 
and cogent analyses of issues and trends, each 
volume has found its place on the non-fiction 
bestseller lists in Hong Kong. 

The later volumes no longer follow the 
basic organization of the government yearbook 
but are structured around social sectors and 
topical themes. There is relatively little repeti- 
tion from year to year since often different 
authors were called upon to write on the same 
topic from one volume to the next. Taken 
together, the four volumes contain some one- 
hundred independently written essays which 
describe and dissect Hong Kong society and 
government from the mid-1980s to the early 
1990s. 

A fifth volume covering 1993. edited by 
Dora P.K. Choi. et. al, is under preparation and 
should appear later in the year. 
















^ 


It, kin. Ill 






km- 







5 

Number 11 



CANADA AND HONG KONG UPDATE 

** Vc m % m m. 



WINTER 1994 



Raymond Chan Elected to Parliament 
Appointed Secretary of State 



In the Canadian federal election last 
October. Liberal Party candidate Raymond 
Cheuk-yu Chan was elected Member of 
Parliament for Richmond, B.C., a suburb of 
Vancouver [see Update, no.9, Spring 1993, 
p. 13]. He polled over 21,000 votes - almost 
4.000 more than the Reform Party candidate 
and 10.000 more than the incumbent MP, 
Tom Siddon (Progressive Conservative). Mr. 



Chan is the third Chinese-Canadian elected to 
Parliament and the first bom in Hong Kong. 
He was elected on his forty-second birthday, 
twenty-four years after he arrived in Canada. 
Before his election Mr. Chan was an engineer 
at TRIUMF, the scientific research facility 
housed at the University of British Columbia. 

Raymond Chan's political life began 
when he became a leader in the overseas pro- 




Raymond Chan addressing a Liberal rally with Aline and Jean Chretien (Aberdeen Centre. 
Richmond, B.C.) Chan con ,. d on ^ 2 



Unfolding Drama of Hong 

Kong-PRC Political 

Relations 

by Bernard Luk 
York University 

When Governor Chris Patten delivered 
his first policy address in the Legislative 
Council (Legco) in October 1992. he pro- 
posed limited democratization of Hong 
Kong's political system. Patten's constitu- 
tional package enjoyed the support of a 
large majority of public opinion in Hong 
Kong. However, the proposals and Patten 
personally were vehemently attacked by the 
officials of the People's Republic of China 
(PRC) in charge of Hong Kong affairs. The 
attacks led to a violent down swing in the 
Hong Kong stock market and a sense of 
political as well as economic uncertain!) b> 
the end of the year. [See Update, no.9. 
Spring 1993. pp. 1-4.] 

The attacks continued during the first 
months of 1993. By April. Patten indicated 
that since no counterproposals were forth- 
coming from the PRC. he was ready to table 
his package in Legco. Shortly afterwards, 
it was announced that PRC and UK diplo- 
mats would meet in Beijing to discuss 

Unfolding, cont'd on page 2 



IN THIS ISSUE: 

Raymond Chan Elected to Parliament 

Appointed Secretary' of State 1 

Unfolding Drama of Hong Kong-PRC 

Political Relations 1 

1992 and 1993 - Applications and Visas, 
HKCLPR 4 

Image of the Queen Phased Out of Coinage 5 

NAFTA. APEC. and GATT 5 

Recent Developments in the Hong Kong 

Slock Market 6 

per 

F1029.5 
H6 C36 



Anita Mui 6 

Metro-Toronto Week in Hong Kong 7 

Martin Lee Visits Toronto 7 

Chinese Christian Churches in Metro Toronto 9 

Zoning Controversies in Vancouver 11 

Eleanor Ng: Marketing Chinese Software 12 

John Cameron: Police Officer with 

3000 Cantonese Words 12 

Hong Kong Visitors to Vancouver 14 



Hong Kong Economic & Trade Office in Toronto 

Moves Into New Headquarters 14 

Ming Pao Daily Newspapers 15 

"Red Capitalism": CBC-TV Documentary 

Special on Shenzhen 15 

Hong Kong Vicar General Visits 

Scarboro Foreign Missions 15 

New Project Publication 16 



CANADA AND 

HONG KONG UPDATE 

Editors Diana Lary 

Bernard Luk 
Janet A. Rubinoff 

Illustration & IMS Creative 
Design Communications 

Contributors Fatima Lee 

Katharyne Mitchell 
Joanne Poon 
Pauline Shum 
Hugh X. Tan 

Canada and Hong Kong Update is 
published 3-4 times a year by the 
Canada and Hong Kong Project 
Joint Centre for Asia Pacific Studies. 
Suite 270. York Lanes, 
York University, 4700 Keele St., 
North York. Ontario, 
CANADA M3J 1 P3 

Telephone: (416) 736-5784 
Fax:(416)736-5688 

Opinions expressed in this newsjoumal 
are those of the author alone. 



CANADA AND HONG KONG PROJECT 

Co-Directors Diana Lary 

Bernard Luk 

Coordinator Janet A. Rubinoff 

Advisory Board David Bond 

Mary Catherine Boyd 
Denise Chong 
Maurice Copithorne 
B. Michael Frolic 
John Higginbotham 
Graeme McDonald 
Jules Nadeau 
William Saywell 
Wang Gungwu 



Articles may be reprinted in whole or 
in part with appropriate credit to the 
Canada and Hong Kong Update. 

We want to thank the Donner Canadian 
Foundation for its very generous support 
which has made this project possible. The 
Foundation's long-standing interest in 
Canada's international relations with Asia 
has enabled us to conduct research which we 
consider to be of great significance for the 
future of the country. 

This publication is free. 

Please call or write to us for past 

or future issues. 



Chan, cont'd from page 1 
democracy movement for China, after the 
Peking Massacre in 1989. He organized and 
was elected chairman of the Vancouver 
Society in Support of Democratic Movement 
[see Update, no.5. Fall 1991. p.15]. In 
January 1991 he led an international human 
rights delegation to Beijing to help focus 
attention on the secret trials of pro-democra- 
cy activists. Wang Juntao and Chen Ziming. 
He was expelled from China at that time. In 
1992 he headed a campaign that helped dissi- 
dents Liu Yijun and Lin Lin obtain refugee 
status in Canada. 

After his election. Mr. Chan was appoint- 
ed Secretary of State for Asia and the Pacific, 
a new junior ministerial position within the 
Department of Foreign Affairs and 
International Trade (formerly External 
Affairs and International Trade Canada). 
Chan's experience in Asia and his knowledge 
of Mandarin and Cantonese combine to give 
him a special interest in dealing with Asia 
and the Pacific and to give Canada a new 
kind of visibility in the region. 



Unfolding, cont'd from page 1 

issues related to elections in Hong Kong during 
the remaining years of British sovereignty. The 
talks were to remain secret, and Hong Kong 
would not be represented by its own delegation. 
[See Update, no.10. Summer 1993, pp. 1-5] 

Results of Sino-British Negotiations 

From April to November, the constitution- 
al talks between the two sovereign powers 
went on diligently for seventeen rounds and 
brought forth nothing. If it had been the 
intention of PRC officials to kill the Patten 
proposals by stalling them, as some commen- 
tators suggested, they succeeded in eroding 
away one of the four years in which relatively 
democratic processes could have taken root. 

The fact that Beijing was prepared to talk, 
rather than to allow Patten's reforms to mate- 
rialize and then to abolish them in 1997 as it 
has often threatened to do, lends credence to 
the suggestion that it does not dare to risk the 
psychological and economic trauma of turn- 
ing back the political clock. 

Amidst signs of increasing frustration on 
both sides of the negotiating table, the foreign 
ministers of the two sovereign powers met 
during the summer and agreed to speed up 
the discussions. The approach adopted was to 
tackle the easier questions first in order to 



Mr. Chan's election received a very posi- 
tive response from the local Chinese- 
Canadian community in Vancouver, including a 
dinner for 300 guests held in his honour by the 
Sing Too newspaper. Community leaders 
expressed the opinion that Mr. Chan was an 
"ideal person" to be put in charge of Asia- 
Pacific affairs and that his election was an 
important step for Chinese-Canadians to partici- 
pate in the decision making at the federal level. 

In November he accompanied Prime 
Minister Jean Chretien to the APEC confer- 
ence in Seattle, USA. At a briefing to the 
Chinese language media in Vancouver, he 
indicated that he had met with officials from 
the PRC, Taiwan, and Hong Kong to discuss 
future economic cooperation. 

In January 1994, Mr. Chan visited Hong 
Kong where he met many local leaders, 
including the governor, Chris Patten. He paid 
a private visit to his ancestral place in 
Guangdong. His mission to Asia, designed to 
promote trade and establish high-level con- 
tacts for the new government, also included 
official visits to Japan and Thailand. ♦ 



achieve some agreements, leaving the 
thornier issues for later. By late October, it 
was reported that the two sides were close to 
a compromise that would be a considerably 
diluted version of the original package. 

However, no such compromise was 
reached; and after the seventeenth round in 
late November, the two sides did not even 
agree on a date for the next meeting. 
According to reports, one of the seemingly 
easy questions on which the talks floundered 
was the issue of "how many seats to each rid- 
ing" in direct elections to Legco. 

It was reported that the UK delegation had 
proposed a "single seat, single vote" arrange- 
ment: that is. each riding would have one seat 
in the legislature, and each voter could cast 
one vote. The candidate that wins the largest 
number of the votes cast would win the seat. 
Such an arrangement is widely adopted in 
democratic systems around the world and 
enjoys consensual support in Hong Kong, 
where it is considered as an improvement on 
the "two seats, two votes" plan used in the 
first (and so far only) Legco election in 1991. 

What PRC officials are said to prefer is a 
"multi-seat, single vote" arrangement. Each 
riding would have, for example, three seats. 

Unfolding, cont'd on page 3 



2 UPDATE 



hut each voter would be allowed only one 
vote. The candidates who win the first, sec- 
ond, and third largest number of votes would 
win the seats. 

Such an arrangement, no doubt, would 
allow more voters to have their candidates of 
choice sent to the legislature. However, with- 
in the chamber itself, the member who 
enjoys, say, 60% support in the riding would 
have only half the combined w eight of the 
other two members who together have only, 
say, 30' I support in the same riding. Such an 
arrangement is defended in Hong Kong main- 
ly by the Democratic Alliance for the 
Betterment of Hong Kong (DAB), the party 
of pro-Communist teachers and unionists. 

"Multi-seat, single vote" is a design to 
frustrate the expression of the popular will. 
To insist on such an arrangement is consistent 
with the PRC tactic since the mid-1980s to 
obfuscate public opinion in Hong Kong about 
democracy and representative institutions. 

Reforms Tabled in Legco 

In early December, Governor Patten 
announced to Legco that he would soon table 
part of the constitutional package in the 
Council, while hoping that Beijing would 
agree to negotiate the remainder. PRC offi- 
cials accused Patten of scuttling the talks and 
threatened to publish records of the negotia- 
tions which, they said, would show 
Hongkongans the hypocrisy of the British. 
Patten's press secretary retorted with the chal- 
lenge to publish the full minutes of all the 
rounds. As the Update goes to press, no doc- 
ument has been published by either side, nor 
is there any sign that the talks would resume. 

As the first batch of proposals went 
through first and second readings in Legco in 
mid December. Hong Kong officials indicat- 
ed that if talks were not resumed, the remain- 
ing proposals would most likely be tabled in 
the spring, so that they could be made law in 
time for the local elections in 1994 and the 
Legco elections in 1995. 

Popular Support for Proposals 

During the fifteen months since Patten 
first put forward his package, public opinion 
polls have consistently shown that about one- 
third of Hongkongans support greater democ- 
ratization no matter what Beijing says, while 
another third prefer to have more democracy 
if it could be enjoyed without a confrontation 
with PRC authorities. Only about one-tenth to 
one-fifth are opposed to democracy. 



As the talks between the PRC and the UK 
dragged on month after month without an) 
visible results, the Hong Kong public became 
more and more disillusioned with the 
prospects. However, with the breakdown of 
the talks and Patten's subsequent tabling of 
part of the proposals, his personal ratings in 
the polls have shown an upward trend. There 
is widespread support in Legco as well as in 
the community for some kind of democratic 
reform to proceed, even at the risk of their 
being dismantled after 1997. Patten himself 
came close to what might be calling Beijing's 
bluff, when he said he did not believe Beijing 
would find it wise to disband a popularly 
elected Legco the moment it assumes 
sovereign authority over Hong Kong. 

Stock Market Reaction 

Meanwhile, the stock market reacted to 
the breakdown of the talks as if that did not 
matter. Throughout 1993, the market boomed 
on the strength of the expanding economies 
of both Hong Kong and China. By mid- 
December, the Hang Seng Index stood at 
twice the value that it had a year before, when 
PRC officials launched the most heated 
attacks on Patten. In fact, it is often said that 
investors have become so accustomed to fire- 
works between the two sovereign powers that 
they simply discount such political factors in 
their assessment of the market. Furthermore, 
it is generally believed in the market and in 
the community that PRC agencies, officials, 
and their relatives and friends are so heavily 
involved in the Hong Kong stock market that 
they would be wary about the financial reper- 
cussions of diplomatic rows. 

Impact on Economy 

PRC officials at various levels have pub- 
licly stated that they would not allow the con- 
stitutional disagreements to affect the economy, 
and there are good reasons to believe them. At 
the same time, both the Sino-British Joint 
Liaison Group (JLG) and the meetings on the 
Port and Airport Development Scheme have 
been making excruciatingly slow progress, 
with significant implications for Hong Kong's 
long-term economic development. 

The JLG is the ambassadorial-level work- 
ing party responsible for negotiating the 
details of the transfer of sovereignty from the 
UK to the PRC, as well as the future of Hong 
Kong's external relations. At present, a sig- 
nificant proportion of Hong Kong's statute 
law. including much of the law for the eco- 



nomic structure, consists of an extension ot 
British legislation which would automatical!) 
lose authority with the change of sovereignty, 
The territory would face a legal vacuum if 
those acts of Parliament are not made into 
ordinances by Legco before 1997. 

Similarly, Hong Kong has established 
many links with foreign countries and interna- 
tional bodies as a British dependent territory. 
Many of these links which are vital to the terri- 
tory's economy would be lost in 1997 if they 
are not replaced by agreements made in Hong 
Kong's own name or made by the PRC on 
behalf of Hong Kong. Both kinds of discus- 
sions have been very bogged down in the JLG. 

Where the new airport is concerned, the 
Hong Kong government has been proceeding 
with such engineering works as are within its 
own means. Site formation at Chek Lap Kok. 
as well as roads and bridges linking the site to 
the rest of Hong Kong, have progressed w ith 
typical Hong Kong speed. However, the 
works will soon reach a stage when it 
becomes necessary to secure Beijing's bless- 
ing, in order for financing to be arranged with 
the private sector. That blessing has been 
withheld, for one reason or another, despite 
the Memorandum of Understanding reached 
between the prime ministers of the PRC and 
the UK in 1 99 1 . There is concern that the air- 
port project will be held hostage to the consti- 
tutional reforms. Since the breakdown of the 
talks, some members of the public have 
called for the Hong Kong government to con- 
sider completing the project from its own 
financial reserves. 

PRC Preparatory Work Committee 

If PRC officials have been slow in cooper- 
ation over matters relating to Hong Kong's 
long-term economic development, they have 
been quick in making political moves to 
counter the proposed reforms for more 
democracy. A preparatory work committee 
was appointed by Beijing during the summer 
[see Update, no. 10, Summer 1993, p. 5] to 
study the specific steps to be adopted by the 
PRC for the takeover in 1997 (or before 
1997, as some officials threaten). It was antic- 
ipated that some members of the committee 
may be named to the new government after 
the transfer of sovereignty. The committee 
was instructed to speed up its work after the 
breakdown of the talks. 

However, the committee, consisting of 
PRC officials. pro-Communist elements from 
Hong Kong, and former British-appointed 

Unfolding, cont'd on page 4 



UPDATE 3 



Unfolding, cont'd from page 3 
political figures who are opposed to democra- 
tization, does not enjoy much credibility in 
Hong Kong. Within the committee itself, one 
pro-Communist member has outspokenly 
regretted having to rub shoulders with knight- 
ed minions of British imperialism! If the 
committee is to gain more credibility by 
broadening its membership, it runs the risk of 
greater cleavages within its own ranks. This 
is a problem inherent in the PRC strategy 
towards Hong Kong of building a united front 
made up of conservative business elements 
and long-time Party loyalists. 

In other areas, the united front strategists 
have set up an all-Hong Kong women's 
group, under the leadership of women who 



had never worked for, or had been opposed to, 
women's rights. A major plank in the platform 
of the group is to uphold the Basic Law, 
which is a code word for opposing democratic 
reforms. And the DAB, the pro-Communist 
Hong Kong party, is planning to establish 
youth wings on university campuses. 

Hong Kong Media 

In the area of press freedom, two signifi- 
cant developments this past fall were found 
inauspicious by many Hongkongans. Mr. Xi 
Yang, a reporter for the prestigious Hong 
Kong Chinese-language newspaper. Ming 
Pao, was arrested on the Mainland by State 
Security for allegedly divulging state secrets 
in his story on retrenchment of PRC banking. 



He has been held incommunicado and with- 
out trial since then, in spite of repeated 
appeals by his employers and by a number of 
leading figures of international journalism. 
At about the same time, it was announced 
that the Murdoch group had decided to sell its 
stake in the South China Morning Post to the 
Kuok family. The Post is one of the most influ- 
ential newspapers in Hong Kong and perhaps 
the most important English-language newspa- 
per in eastern Asia. It had been unflinching in 
its reporting on developments in Hong Kong 
and the PRC. Its new owners, the Kuok family, 
are Malaysian Chinese billionaires with close 
ties to top-level leaders in Beijing and no previ- 
ous interests in newspapers. ♦ 



1992 and 1993 - Applications and Visas, HKCLPR 



by Diana Lary 
UBC, Vancouver 



Applications 

The decline in the number of applications 
for landed immigrant status in Canada from 
people whose country of last permanent resi- 
dence was Hong Kong (HKCLPR) has not 
been reversed. While over 46,000 applied in 
1991, only 26,678 applied in 1992. Figures 
for 1993 are still incomplete, but look similar 
to 1992's. 

More striking than the overall decline is 
the change in the places where applications 
are made. Until 1991 the great majority of 
applicants applied in Hong Kong. That pro- 
portion declined to a little over two-thirds in 
both 1992 and 1993. The most common rea- 
sons for making applications away from 
Hong Kong are convenience (an applicant is 
living away from Hong Kong already) and 
speed of processing (the processing time is 
often shorter at posts other than Hong Kong). 
The majority of applications not filed in 
Hong Kong were made in the USA, often in 
places close to the Canadian border. The 
number of applications made at other posts in 
Asia is quite low, as is the number made in 
Australia. 



1991 

39712 

(86%) 

681 

379 

1091 

211 

291 

302 

338 

278 

495 

376 

52 

90 

541 

539 

127 

LOO 

40 

244 

327 

6502 

(14%) 

Total 46214 

» lo November. 1993 



Hong Kong 

Seattle 
New York 
Buffalo 
Chicago 
Atlanta 
Detroit 
Singapore 
Boston 
Los Angeles 
Dallas 
Tokyo 
Minneapolis 
London 
Rome 
Sydney 
Bangkok 
Bogota 
Mexico City 
Other 
Total (Non 
Hong Kong) 



1992 

18458 

(69%) 

521 

478 

1384 

375 

1167 

385 

294 

279 

520 

222 

22 

74 

752 

480 

36 

43 

76 

373 

709 

8220 

(31%) 



1993* 

18123 
(69%) 

669 
540 
2476 
189 
695 
299 
147 
131 
428 
168 

II 

10 
938 

23 
9 

89 
162 
546 
626 

8176 

(31%) 



26678 26299 



These figures represent the number of 
individuals involved and are roughly three 
times the number of cases involved. The total 
number of cases for 1991 was 14,500, for 
1992 9,496, and for 1993 9,829. 



Applications by class 

The composition of the applicant group is 
changing. The proportion of people applying 
as independent immigrants went up substan- 
tially in 1993, indicating a large increase in 
the number of people who feel qualified to 
apply under the points system. 



Family Class 

Refugees 

Assisted relatives 

Business 

Retired 

Independent 

Total 

* lo November 1993 



1992 

9214(35%) 

10 
4695(18%) 
6254 (23%) 

75 
3430(13%) 

26678 



1993* 

1916(7%) 

2 
11526(44%) 
4009(15%) 

183 
8663 (33%) 

26299 



Visas issued. Hong Kong CLPR 

While the number of applications has 
declined, the number of visas issued contin- 
ues to rise. Visas issued are the product of 
applications made some time before, in some 
cases as much as two years. Here too, the 
proportion of visas issued to people from 
Hong Kong at posts other than Hong Kong 
continues to rise. Again the bulk of visas not 
issued in Hong Kong were issued at posts in 
the USA. 



4 UPDATE 



Visas Issued: 


HKCLPR 




1991 


1992 


1993* 


Hong Kong 


25977 


29836 


27430 




(889 ' 


(829 1 


(78%) 


Seattle 


508 


458 


655 


New York 


346 


522 


411 


Buffalo 


707 


1391 


1755 


Chicago 


48 


177 


418 


Atlanta 


106 


421 


729 


Detroit 


247 


328 


292 


Singapore 


169 


440 


410 


Boston 


222 


248 


233 


Los Angeles 


132 


326 


366 


Dallas 


274 


282 


332 


Tokyo 


16 


13 


50 


Minneapolis 


90 


77 


57 


London 


206 


395 


751 


Rome 


20 


447 


304 


Sydney 


24 


46 


31 


Bangkok 


12 


36 


70 


Bogota 





36 


72 


Mexico City 


174 


292 


321 


Other 


440 


514 


1543 


Total (Non 








Hong Kong) 


3643 


6449 


7803 




(12%) 


(18%) 


(22 f t) 



Total 



** 



29620 



36285 35233 



• to November 1993 

** These figures do nol include landings from applications made 

in Canada, which would be quite small in number. 

Source: Employment and Immigration Canada. ▼ 



Image of the Queen Phased Out of Coinage 

During the summer of 1993. new coins were issued in Hong Kong on which the image of 
the Queen was replaced by the bauhinia, the city flower of Hong Kong. The new design was 
approved by the Sino-British Joint Liaison Group (JLGl on the transfer oi sovereignty. It is 
expected that the old design will be phased out over the next few years. 

Earlier, the word "colony" had been removed from the designs of banknotes. In Hong 
Kong, there is no central bank. Notes are issued by two private banks. Hong Kong Bank and 
The Chartered Bank, under regulations instituted by the Hong Kong Government. The two 
banks will soon be joined by The Bank of China, the state-operated foreign exchange bank 
of the People's Republic. ♦ 




Illustration by Derek A. Rubinoff 



NAFTA, APEC, and GATT 



The news of the final adoption of the North 
American Free Trade Agreement (NAFTA) by 
the U.S. and Canadian governments in 
November was received in Hong Kong u ith 
cautious optimism. While it was expected that 
NAFTA would help the economic recovery of 
both the United States and Canada - important 
trading partners of Hong Kong - there was 
also the concern that the agreement might lead 
in the longer term towards a "Fortress North 
America" with protectionist policies against 
the western shores of the Pacific Ocean. At the 
same time, there was a certain amount of dis- 
cussion about increasing Hong Kong*s invest- 
ments in all three NAFTA countries to take 
advantage of the enlarged market. 

The Asia Pacific Economic Conference 
(APEC) summit that took place in Seattle in 
late November almost saw Hong Kong left out 
of its proceedings. 

APEC was first convened in 1989 as an 
inter-governmental meeting of the 
"economies." rather than the "states." of the 
Pacific Rim. As an autonomous and active 



economy. Hong Kong has always taken part in 
the deliberations of the Conference. In fact. 
Hong Kong, the People's Republic of China 
(PRC). and Taiwan simultaneously became 
members of the Conference in 1991, the first 
time all three major Chinese communities 
were admitted to any international forum 
together as separate and equal members. 

However, when the United States issued 
invitations for a summit meeting of APEC last 
summer, the PRC objected to the participation 
of Hong Kong and Taiwan, since in its view 
these two are not sovereign states and have no 
place in a meeting of heads of governments. 
This was consistent with PRC policy to 
exclude Hong Kong and Taiwan as much as 
possible from international governmental 
organizations, while not objecting to their par- 
ticipation in strictly functional activities. In the 
end. Hong Kong and Taiwan were represented 
at the ministerial level, while other members 
sent their heads of government. 

Canada was represented by Prime Minister 
Jean Chretien and Secretary of State (Asia 



Pacific Affairs) Raymond Chan - the first 
exercise in high diplomacy since the new 
Liberal government came into office. 

Commenting on Canada's role in APEC. 
the chairman of the Hong Kong Trade 
Development Council who was a participant 
invited by the Conference, said that Canada 
was fortunate in being uniquely endowed with 
a large pool of citizens of Asian origin who 
could contribute their expertise, experience, 
and connections. 

The successful conclusion of the Uruguay 
Round of the General Agreement of Tariffs 
and Trade (GATT) in